Not communicating can be toxic to both your project, and again can bleed into personal relationships.Two: Pick a starter project that is as small scale as possible.

You can have all the contracts in the world, but if they other guy has more money, they'll bleed you dry in court so you might win a small battle, but you'll lose the war. 

I was just replacing a section of laminate in house where animal urine had soaked in to the crack, causing the particle board backing to swell up like sponge push through to the surface.

After that things pay themselves off and your bank account swells faster then you can spend. 

As long as you are not bleeding money and can live with your decision you're good.

At the numbers you presented, even at a 7 cap rate the property isn't worth 360k until year 7 (if you assume rents grow at 3% a year and expenses grow at 2% a year) and you have negative cash flow for the first 2 years.Since it's a 1980 property, I'm assuming it's not on the bleeding edge of the path of progress and I'm assuming it's not a A class property (a 5 cap is usually reserved for high demand areas and A class properties).Unless you're very certain the rental rate growth is substantial, I wouldn't buy this property for anywhere near what they are asking for it.

You can wait for appreciation, but you should never buy something that bleeds from day 1 without being pretty experienced and able to cover those losses.

Best time of the year to sell in now..stop the bleeding. 

Yes James I understand what you are saying but you can't bleed a rock, it would take three plus months and thousands in lost revenue and then I would be responsible for storing his property.

@Rochelle Wilkinson - as the others have stated, consult an attorney experienced in matters like this immediately.Expect your attorney to discuss with you how this issue may bleed over into some other potential exposure/liability.