I mean there are still sellers out there that wont use a realtor or any other advisor and don't know what to ask for in a buyer. and that allows the buyer with no real financial backing to get into contract.. it happens.. just like bird dog or wholesalers for the houses there are those that try to pimp development land.. most of the times they cant get into contract because they don't have the ability to transact.. but occasionally they do.. the one I am closing on in Oregon in December came from such a person and I paid him 125k in cash for the assignment.. but he worked for a large land development company as a employee for years.. so he knew the game he new the process.. and he got this seller under contract..

This is based on an ARV of $950,000.00, a rehab budget of $123,000.00, and holding costs of $12,000.00.Financial BreakdownPurchase CostsTOTAL REPAIRS:$123,000.00Return on Investment for Flip*(Based on no loans or leverage)12.25%IMMEDIATE49.67%ANNUALIZED

Am I under any obligation to rent this place to him?

I'll also have three years of financial history to show it's a solid investment.A balloon payment of 3-5 years is pretty common.

Tenants do not have the financial wearwithall to handle roofs, ACs, furnases etc etc.   

It is better to lock interest at historically low rate (4.7%) using government to back the lender than find your "private" bank failed his obligation leaving you with nothing.

We're doing pretty well and approaching our primary financial goals, to walk away from our W2 jobs and focus solely on real estate. 

Better to be well prepared financially when jumping into the market as you wouldn't want to lose the property or not be able to maintain it, etc.  

I’m a newbie and looking to get into the REI world, starting off by learning before I make my first purchase (either a rental or flip).I’ve only heard good things about the community and I am looking for education and tips, while limiting risks and avoiding huge financial pitfalls.Thanks in advance, and I am looking forward to this new adventure!

I took financial responsibility for getting units ready to lease and beginning some rehab which they agreed to all funds invested.