She actually didn't object but she also didn't accept.

No problem.I hope this deal works for you.Just remember the seller won't put much weight to "I bought a house a year ago and the rehab was 40k more than expected"Instead sellers want third party objective data that says the house needs major repairs and will cost a bunch of money to fix.Since you are buying the property you stand to gain and are not an objective party to the seller.This is why banks order bpo's from agents that are not involved in the short sale or reo transaction.The bank only wants an objective valuation based on paying the fee for the report.good luck

I also like how you developed a unique strategy that worked for everyone with leasing to the seller for a year, and the optional memorandum do give yourself options if the need arises.

I’ll seek the proven wisdom and leave the unique strategies to those with capital to throw around.

, the tenants were quite fine, and actually pretty excited about the idea of the repairs :)We just strived to maintain open communication with them throughout the process, and showed that we respected the property itself, as well as respected the tenant's time and how they have made it their home as well (by showing that we want to fix it up for them to provide a better place for them to live).Granted, we could have just lucked out an have easy-going (and logical) tenants, but in sum, I think being respectful of the tenant's time and space, and showing objective reasons why the repairs will benefit them goes a long way in rapport building and getting the job accomplished.

Unless the business has some unique selling proposition I would not even consider it.  

Not our most costly but our most unique.  

I am actually currently negotiating a deal for a 3-family in BK for my clients who have the same objective as yourself.

I plan to develop a subdivision in Hawaii with a unique (for Hawaii) offering.

Great question and unique scenario, I'd likely consult a foreclosure attorney on this one.