Things like roofs, water heaters, A/C units gone bad, tree roots in the sewer line, etc.Let's say this property rents for $1,000 / month.

In many areas, tenants can collect double or triple damages if you improperly withhold security deposits.

You need to carry your own water in a 50/50 deal.

Just blew them out of the water on performance.

Especially since a rental grade rehab (looks good but is hard to damage) is different than what appeals to retail buyers (the nicest finishes that fit within the area.)Buying and selling costs these days can easily eat up 12-13% of your selling price.

I may allow A small pet if I can charge additional deposits for any damage they do.

As a contractor, I know that sometimes you have to pull everything back to find the damage and repair it, otherwise, you just have a money pit that keeps sucking up all your resources, and never is what it could have been, had it been repaired properly.

But termite damage and too much bad repair over the years makes these not worth saving.

As much as I hate backing out of deal and hurting my reputation as a buyer, with this much extent of damages, I would think backing out of a deal is the best course of action.

He also mentioned you help the middle class then they go buy tv's,cars etc. and it drives the economy.My problem with this statement is that he said we lost 9 million jobs in the recession and hired back 4.5 million.The problem is the QUALITY of jobs that people lost and the jobs they had to take as a replacement are nowhere near each other in income levels.I would venture a majority of the new jobs are low income where you tread water paying the bills .In this case consumers will not have much discretionary income to spend on extras to drive the economy.