I have flipped over 35 lower end properties, but hesitate going to high in Naples and Ft. Myers where the house pricing has zoomed up. I have found many flipable houses but hesitate wondering if I may be biting off mo...

To answer Brian's question, I believe you just want to cut your losses and recover some of your cash and possibly pay back borrowed money.Assuming my hunch is correct, you just claim your losses, and there is no tax issue.If you do have a taxable gain after selling this property, you will not have adverse tax consequences, either.

My info: I stopped direct mail two years ago due to lack of response and the cost per deal reaching close to my typical wholesale fee (breaking even, with a marketing cost of per deal $7-10k) I switched to flipping the deals to get a larger piece of the pie as lead flow had dropped 75%.

The building inspector shows up and has now placed a Stop Work Order on my front door.In addition, she apparently also called the Board of Health and they came to inspect the property.

It's whatever you can negotiate...I've had deals (both lending and borrowing side) with interest rates anywhere from 6-14%, terms anywhere from 3 to 18 months, no upfront points, 4 upfront points, monthly payments, one-time payment at the end, etc.  

He's concerned that doing so will affect his future ability to borrow for a personal mortgage.

Well, with a Contract For Deed you are essentially taking ownership of the home and your 'borrower' is under contract to make installment payments until the end of the term, so there would be no power of sale.

I have no intention of managing the property, however I also have no intention on buying a property somewhere that someone can stop paying rent and I cannot evict them for several months due to state laws

As much as I despise taxes getting out of control, no, it will not stop anything.

Not in the sense of bad properties or anything, just in the sense of too many rentals in the area and the gov't might try and step in to stop it.