First off, identify more precisely what the exit value is and we need to know what is the amount of repairs (in dollars, not quantity) needed to obtain the exit value?

I see a lot of foreclosures going on and I just want to make sure I can identify what situation I'm faced with so I wont act like a bumbling idiot.

As part of my negotiation I had already negotiated that they cover my closing costs of $8,500 which was the max that I can get back at closing with the FHA loan and I also am having them fix some issues prior to the closing date that I identified in my inspections.

I've found the responses you've gotten to be most informative.I have 15 years of financial experience (credit & equity), but let me also preface that other than finishing up my MBA very shortly for which I'll have a real estate concentration, I have no direct RE experience besides owning my own home.When you're contemplating a transaction or generally evaluating your RE business, let me suggest that you identify a handful of the most relevant risk factors you're exposed to.

One thing to keep in mind is that you're going to need to educate yourself as well to be able to identify if a person is a "good" partner for yourself.

A quick and easy formula to use that will keep you safe in this price range would be to identify the real ARV (after repair value) which has nothing to do with county assessed records, but sold comps in the area that were like kind and in move in great condition.

Unfortunately, old house = money pit which does NOT usually equal cash flow.Re financing: As Mike mentioned, and as you can see, we were both easily able to identify this property from your description.

a month or 2 back there was a post about identifying an area by zip code, which was a map and color coded...can anyone find it or tell me about it again?

She refused to sign the landlord rules but would not identify what rules she had an issue with.

Failing to identify potential issues will fall on the lender to show prudence, not the borrower.Since the OP does not reside on the property sold, the SAFE Act may well apply.