The approach my investor had was straight talk about the numerous issues he saw, some of which were not mentioned by the GC:  foundation, water damage that may have come from the outside, perhaps from the runoff from the neighboring property, rotted base boards in the corner (water damage) that could mean deeper issues.  

But in commercial real estate your risk is lowered extensively by doing proper analysis of properties and only moving forward with the ones that are numerically "Good Deals."

I'll send you a contact invite and we can keep in touch!

I have been invited to a local meetup on the 14th which I am excited about.

Of course, getting it under market is better, but to me, that doesn't preclude at-market deals if everything works out numerically.

Cost is $39,900 and will most likely rent for $700/month.I plan to have this house paid off in 18 months, at which point I will begin using the additional cash flow for future deals, savings, etc.The question is at what point, numerically, can I stop putting the normal percentages (i.e. 7.5% for vacancies, 10% for maintenance) away from the rent monthly, or at least reduce the amount to use more of the income for future investments?

I plan to reach out and chat with those who extended that invitation.

I work primarily with real estate investors, and a lot of my clients are inviting out of state.

I will say, I've picked up a solid base of knowledge thanks to numerous helpful podcasts, blogs & books that have been recommended here and elsewhere.  

I disagree that tax can only be deferred for as in the scenario where we take back a 2nd note for any am't above $800K for the house, the payments can be made over time, which then can be paid in years when there is no W-2 income or offset against numerous mortgage interest deductions.