Even if the lease is valid and written very well doesn't mean the potentially defaulted tenant is collectible so you could spend more money and time down the drain never to be seen again.

@Mike Bianchi Don't know what market this is....................anything over 2.5 mil and my interest would start to fade............I think your 41% of gross for expenses may well be valid.

It’s under warranty, and in a good location.

The problems I've had with customer supplied material is that they either tend to buy the cheapest of the cheap stuff or they have an issue with defective material and expect me to warranty something that they bought. ex: I had a customer who had bought a water heater themselves and the electric heating element went bad 6 months later.

I always considered warranty deeds the best deed. 

It's actually great advice, i was really imagining the whole situation and in my head it seemed weird, you actually validate what i was thinking hahaThank you so much for the advice!

You'll also want to consider lender fees, appraisal cost, any fees or charges from the title company, attorney, or real estate agent as well as the cost of any inspections or home warranty products you choose to purchase.

These are all very valid point.

@Greg DickersonVery valid points, thank you for your advice.

Valid point @Joseph Cacciapaglia, I think I'm one of those investors who think that foreclosures are automatically a good deal.