I think it's the best on the web.IMO, you are using the wrong financing vehicle if they have only one per cent down, unless they provide other collateral, that is a bad loan to start with and will not be viewed well in court if you have to go there.No skin in the game usually dicatates and option being financed along with a lease to provide possession.I would also say that you never finance inventory, small machinery, furniture and fixtures and disposables (inexpensive stuff) unless the seller wants to just dump it.

Do a self inventory, and move from there.PG

I am not familiar with your market...What would it cost to buy the house that your renting for $600Is existing home inventory raising or falling?

But the concept of destroying excess, unsalable inventory is valid.

Good luck rehabbing that one.I'm happy to see these folks make idiot bids all day long... there is more than enough inventory where we buy, and dumb money doesn't last very long.

It also depend --if it includes a business --such as liquor store, c store, several rentals -- a hotel --each will have different clauses --start with LOI --and have an attorney draw up actual contract --must have draft prepared based on buyer and seller understanding - also need to involve buyer's accountant --for break down of components for maximum tax benefits for new buyer --such as RE, Equipment, Inventory and good will.

For your first question, it is irrelevant if another home has been flipped in that area (although I would look at that as one of my exit value comps).The most important factors in selecting a flip property are getting the uglier house on the nicest street, knowing your inventory levels (low inventory levels equals less competition and thus, usually better offers for you) and selecting a conforming property that has recent comps to support your exit value.

I think we can all agree that until the bulk of the shadow inventory, call it what you want, but all the bank owns are cleared out, this RE market is going nowhere.

I'm also curious about inventory and how many deals investors are able to do month to month if cash is not going to be an issue.

Removed $5,684 from supplies added to cost of goods sold and ending inventory."