I have been offered a non-performing 1st and have the due diligence package along with my own comps and assessment.

But the question remains as to who assesses the house as "habitable" and legal to rent?

Then you an assess the condition of the walls.

You might walk away from a perfectly good deal because the cash flow appears too thin.Which brings me to another point I'd like to make and that is; cash flow ain't the be all and end all of assessing whether a property is a good buy or not.

I know almost all of my properties are over-assessed.

Plus, it isn't a large park, only about a dozen units...but there is room to expand.I'm thinking now that SF may help me get the deal, but that I may need to find a partner as well.

We're talking 6% of the assessed property value...

You may need both depending on your risk assessment.

In that case we don't have the same issues as we do in funding a cash loan taking collateral.From a risk standpoint that a lender will assess, a seller has been the owner of the property, they are aware of ownership issues, they may receive the property and there is no obligation, unless unique by state law, to resell the collateral and pay the debt outstanding as there is with a cash loan by a lender.

I suppose that is more a function of risk assessment.