I wouldn't be worried about the 5-day inspection period, but that sign makes me scratch my head...if this is a retail flip you have to ask yourself what kind of price reduction that sign will demand.

Originally posted by kiran K:CitiMortgage REO 5B/4B Duplex - Atlanta SuburbsList price - 39500Offered -42500 (Accepted Offer)Rehab Cost - 14000$ Rented for 1575$ for both unitsSunTrust REO4Bed/3Bath - Atlanta SuburbsList Price -75000 dropped it to 65000 after a monthdropped it to 47500 after couple of monthsPut an offer for 50500 with 5000 Earnest and closing in 10daysOffer Accepted for 50500rehab cost - 4000$ and came with a tenant, found a tenant on the other side in no time rent -1375Kiran, my only question to your post would be: Why would you want to offer more than what the ask price was, particularly the second one where multiple reductions took place, the seller is motivated at that point and the chance of getting that deal locked up for at ask price or below is high.

She went to see a broker friend of mine who said he could get her qualified for a new loan but not for enough to cover the existing loan hence the reason for the need for the S/S flip to get the principle reduction.

I got no response from the mom the father thanked me for getting the work complete. the water company sent me and email back stating that they would not reduce the bill due to the account being in deliquency and that the water usage was not high enough to constitute a reduction(basically saying the usage was normal).

I disputed all of them and most I got a reduction in the taxable amount.

If there is any rate increase or reduction in available funds, your capacity to acquire another property may be effected too, so a bird in hand may be better than a smaller profit considering the time it will take to get back in the game where you were before you did this deal.

and right now, due to so much reduction in value, many investors would pass the insolvency test.2nd thought is really a question on this topic: does anyone know what Bob Diamonds course (Attorney X) is all about?

He got around to telling us as a by the by recently wanted a significant rent reduction to renew (we said no thanks as it is already rented below market value on zillow), then he comes back and want to rent for another year at same price.

This strategy may work for you because a) the reduction of monthly debt service on your current home may allow you to rent out your current home for a decent cash flow b) the low down-payment requirement (3.5% last I looked) on FHA loans would allow you to tap only the cash you have on hand and purchase a new property.Pros: Most efficient use of available liquid capital (from the brief snapshot you have given me)Equity in current residence could later be tapped to help you remodel and build equity in second purchaseCurrent residence may cash flow well once rented (not enough data to verify)Cons: Require you to moveHave to pay refinance closing costsThere will be time that you are paying both mortgages while you are looking for a suitable renter, but if you plan this for PCS season for the large number of military installations in the area your risk here is greatly reduced.Please remember to take this with a grain of salt, I do not have all of the details of your situation and you should talk with your spouse and lenders to ensure that this works in your situation before executing this strategy.I hope all goes well for you,Allen Fletcher

It appears she was only looking at the debt reduction in her returns assumption.