The most important thing for every investor to get you through your first fix and flip deal or 100 th deal comes down to experience and credit.The higher the credit the better pricing terms are.Usually higher credit less down payment to bring to table.Lower the credit higher down payment to bring to the table.Experience is the icing on the cake and can overcome credit issues in most cases because the lender can see that you know ehat your doing.However if credit is to low or negative the pricing may still be a little higher relative to what a prime borrower will get with significant experience and credit.So all in all its a sliding scale credit plus experience is the golden ticket for prime pricing and the most leverage.If either of these are not ideal...No problem pricing changes where you may be charged higher interest relative to a prime borrower or have to bring money down or pay monthly interest.Its all relative to your deal and scenario and gameplan.

I’m considering adding the heat to their existing utilities charges this coming fall (since winter is basically over at this point for my area) and just letting it slide until then. 

I think you need to separate in your mind the note purchase and any potential subsequent modification. 

Some will be slap and dash home depot specials but some will be quality and people are trying to get out with the perceived slide. 

I have heard of few troubling stories of bad tenants or bad neighbors snitching on the landlord for one reason or another and the stove is subsequently taken away and the kitchen ripped out. 

And, a last second official records check just prior to closing/recording your mtg, to make sure he doesn't slide another mtg in there.

I hope to increase budget for subsequent deals.I prefer to avoid a ridiculous commute, so Valley areas are not ideal for me, but Inglewood, Hawthorne, Carson and Long Beach are definitely viable options in terms of location - thanks for the suggestion @eric dowling !

The income the tenant paid me is technically their money, so they're also paying for my down payments and subsequent returns on both income and equity at no cost to me personally.No one is saying to never deleverage.  

Interesting post, Jeff.However, if no one bids on the courthouse steps (not uncommon here), and the bank subsequently lists with a brokerage, then the bank can keep any surplus from the brokered sale (or eat any loss), correct?

We subsequently formed a second JV/LLC to develop a spec home in the Kirkwood neighborhood on an infill lot picked up in a tax lien foreclosure.