Here's a look at the numbers outlining the sustaining performance of the property: Monthly rent: $950PM fee: 9%Mortgage amount (taxes/insurance escrowed): $535Reserve for expenses: 15% = $142.50 (a little lower than usual since we took care of all cap ex items in the rehab)Total monthly/annual cash flow: $187/$2,244Annual ROI: 18.13% We had some private investors in on this deal as well, and while we were not able to give them the bonus this time around we still gave a solid 10% guaranteed APR (~3% cash-on-cash over the 3.5 months of this project).

You buy an undervalued house that needs rehab, perform rehab, rent it, refi and repeat. 

Just don't expect it to perform as well as your calculator says.One more piece of advice...if you are investing in C- / D areas and you install air conditioning, make sure you chain the condenser down.

Does your state and contract allow you to sue for specific performance?

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@kai@Kai James There are many options to finance good, performing deals.

That's right it stands to reason why it helps to look at the larger picture and perform a analysis on the economy and the understanding the economics is is just a guessing game believe me I study economics Wharton School of Business:)                                                                                                                       Have a great day

@Jake GoodwinMight be a good idea have someone you can call on to inspect the work being performed and verify loose ends you may be curious about.

They have failed to perform according to the contract so there should be no problems with you backing out unless you signed something that gives them as many free screw ups as they want. 

Go to local RE meet-up groups and read, read, read (real estate books, books on performing repairs, etc., and scour the posts and blog articles on BP - you will learn a lot in the coming months if you take the time to learn).