Tried my hand a flip with a contractor I now wouldn't recommend to my worst enemy, but learned a lot from it.  

My first duplex I looked at is one of the worst properties I have seen so far.

@Greg S yes and no for us here as SC one of the most landlord friendly states but yet one of the worst for investment taxes on rentals.

I'm willing to put up my own money (I have around $130k of my own) to finish construction if it came to that point, as I'm confident I will be able to pay off investors and cash out $200k+ with a 1.4x DSCR when I refinance in 9-12 months.However I'd prefer to borrow additional money from the investors at 8% instead of using my own funds if possible and keep my money as kind of a "worst case worst case reserve fund".I've attached my underwriting sheet here to show rental rates, gut rehab cost projections and refinancing assumptions so you can get a feel of whether or not I'm being conservative enough.

Your satisfaction with the effort of someone who works for someone else is irrelevant to the payment of a commission you already agreed to.And, by the way, there are many sellers who would kill to have your story be their worst experience.  

Filed under the heading: What's the worst they could say?

I would highly encourage you to have that one done, worst case scenario is that the tanks have leaked and there will be a major clean-up required.  

Although it's technically not legal, most people either aren't aware of the rules or don't bother with this step assuming that the worst case scenario is a small fine and a requirement to get licensed if you are sanctioned.I always advocate, that if you are serious about this business, to get a real estate license.  

Owner took out a mortgage in 2013 for $68k for the purchase of bothCondo association filed delinquent assessments on 3-24-15 this year for Floors:1, 5, 4 & 11 -- not sure why they did not file on some of the others - per my understanding the original developers are not paying either, however thats probably a moot point since it would be like attempting to get blood out of a turnip.Taxes per floor range in cost from $2700-$5100 -- the ones with lower assessments went and argued with the appraisers office once they bought out of foreclosureSpecials payable until 2023 of $4421 per floor  (once this is done - helps a bit with cash flow -- specials were used to change some windows, make street level improvements and upgrade the heating/air)Last Income statement I could get my hands on was from 2012 -- Expenses per floor at that time (doubt it's changed much except the owners association dues are likely higher to make up for the shortfall of the other deadbeats)Monthly expenses of $2500-3100I believe the mgmt company is ripping the condo owners off - charging $3575 per mo for the building for building maintenance, $3046.23 per mo for janitorial, $3300 per mo mgmt fee -- these are some big ticket items I could see cutting back on.So rough financials per floor per mo****************************************$3383      per mo rent (5800 * 7psf/12)   (676)     20% vacancy allowance   (643)     general/special taxes   (2600)     rough avg expenses per mgmt company - think quite a bit can be cut here---------------------------------------------------------------------------------(536)       rough loss per mo on a worst case scenario$4350 per mo rent (5800 * 9psf /12)   (652)   15% vacancy allowance   (643) general/special taxes    (2600) rough expenses per mgmt company - think quite a bit can be cut here---------------------------------------------------------------------------------455 cash flow per mo on a better case scenarioWhen you put pencil to paper this is not a good deal as it sits presently, however per my understanding - if every floor owner (or if the expenses for the building) were truly spread out over the 11 floors and all 11 floor owners (or one joint owner) was paying their share the monthly expenses could be cut quite a bit.  

Worst that happens is it doesn't come off, but in many cases the company doesn't bother to respond and the bad credit can be removed.