I can see how your way is better though because then you are getting more up-front (all about minimizing the risk).Thanks again for all the input Jon, there is a lot more to this business than what you see on the surface and I am pumped to be getting involved and have this site as a resource/sounding board.

Assuming no or minimal repairs, the deal should make sense for someone with the cash to buy this property outright.

Try to repair as many of the findings as possible to minimize the "red flags" to potential buyers.

Sad, but it happens.Otherwise since he is at fault, then yes, the insurer should pay for the damage..being rather minimal in amount, most auto insurance policies should cover property damage claims like that no problem after filing for it.

Your gonna have to carry an extra month of holding costs, but that is minimal compared to what can happen if you bring in tenants with a questionable history.

These owners responded, I paid them the $100 and paid the back taxes (which were very minimal).Art - it's a residential development.

I am willing to take a risk on this one but want to be educated on the risks and how to minimize them.

Of course if I wanted to change that $1,000 to be more/less conservative/aggressive, I'd simply change the amount I put away (not to exceed my cashflow).I feel this method would give you more control, less to qualify for, and you would be gaining minimal interest vs paying the simple interest on the HELOC.  

However, we do realize that there needs to be a minimal set of criteria to begin with, so we are addressing: Trash cans being out of sight during the week (and we need to address having them put away by say 9:00 p.m. as suggested), landscaping, what types of projects require Architectural Committee approvals (permitted projects only or assembled items versus constructed items), screen doors, fines (penalties for non-compliance) etc...This forum is giving me some great advise, keep it up folks, and as always, thanks in advance.

Don't minimize their potential help, imo.