The capital is not prorated in this case.Also, the investor can also qualify for a 1031 Exchange in this case (Revenue Procedure 2005-14) as long as they can say they have owned and lived in the property as their primary residence for a total of 24 months out of the last 60 months AND the property has been rented out for a sufficient period of time to demonstrate they had the intent to hold for investment (generally 12 to 24 months).

If it's something dumb they've done (like a fork down the disposal) I tell them they need to be more careful. 9/10 they are sufficiently embarrassed.

That's the most common choice on a contract.

Most folks who list properties on the MLS aren't in that category.A "pre approval letter" from a legitimate lender, along with an earnest money check will be sufficient to make financed, not cash, offers.

I would first come up with an estimate for the amount of work needed with a contractor after reading the BP and J Scotts book on rehabbing so you have the background needed to understand what it is really going to take to rehab and all of the associated holding costs (taxes, interest, utilities, etc)Then I would make an offer with your realtor ensuring there is sufficient profit there.

And with an option the option holder always has the choice to let it expire unexercised.

Most new investor types spend way too much time trying to make chicken salad out of a single chicken-scratch property with an unreal principal rather than creating a deal flow to have many choices from.

The borrower does not usually have much choice in the matter, the Lender only gives the money to the borrower (on behalf of the borrower, really) provided they get an appropriate deed of trust or mortgage on real property sufficient to cover the money they are lending.

Maybe a shift of population to cities where you have many more choices and can go to a store instead of being limited to the Avon lady.

There is one and only one choice - the national flood insurance program.