I was at Lumber Liquidators yesterday and the guy showed me a product he compared to allure with a 50 year warranty, and it was $2 a SF compared to allure $3/SF (over 1300-1600sf, were talking some $!).

@Jai Reddy Definitely a valid question.

I always wonder how investors who do not have the home under contract come up with a valid repair cost for that property

I can build brand new 3 bedroom, 2 bath duplex for $110,000 per side ($220,000 per building).Conservative appraisal $140,000 minimum, real world would be $150,000.Rent $1300/per sideTaxes $250/month per side(non owner occupied rate)Insurance $50/month per sideVacancy $130/month per sideP/I 5%, $110,000 Loan, 30 year Mortgage - $590.51 per sideMaintenance/Cap EX(5%) - $65 per side (after 5 years would have $3900 saved up per side)HOA/POA - $0 N/ATotal = $1085.51 per sideMonthly income = $214.49 per side or $429 per duplex per month at an initial purchase cost of approx $0(zero - see below)I know I don't have management, maintenance and cap ex are small, but there is a 5 year warranty on most things like furnace,etc, and 10 years on structural.

Some times you just need someone with more authority than you to give you "validation" you know...

Having a perfectly valid reason to use leverage does not negate the fact that it is you, not your tenant who pays the mortgage.

@Will F.Just to clarify...you cannot force the tenants to agree to relocate if they provide a valid lease, proof of rent payments, etc.  

We only sell cash flowing, Warranty Deed properties, so what's your point in your first statement about Quitclaim deeds?  

You know your market better than I do but yeah, that's a valid strategy.

Most REO online auctions provide a warranty deed, therefore there wouldn't be any issues really.