No, it does not sound like fraud merely because the buyer was in the middle of a tax-deferred exchange transaction pursuant to Section 1031 of the Internal Revenue Code and then backed out.

@Adam CraigI'm in the middle, I don't improve the property every time there is a tenant change and I don't wait until ready to sell to do the improvements either.I'm in the midst of updating a place.

My partner and I are hoping to move back to San Francisco in the next year after living in the east bay for 10 years.

In some areas, especially in the north east, this can be very difficult if you don't know the right people.

Split closing and such down the middle?

Yes property values are higher but if you are interested in cash flow I would look into Westside of Cleveland from about West 125th street and east.

I know Sean Terry always says he only keeps sub2's for himself and never assigns them, but wondering if there was a reason or additional risk there that I am not seeing.I don't want to get caught in the middle of a due on sale clause or something if it goes poorly :)I know there are many forums on sub's, but none address this specifically.

Hello fellow Phoenix-area investors/landlords,I'm in the East Valley (Gilbert).

The second insurance company will usually at some point pay off but you are all caught up in the middle and during all this time you have paid twice the insurance amount, therefore reducing your cash flow.Also remember that you have to change the policy from a homeowner policy to a Landlord policy, which will be a higher amount. 

It's hard to gauge how much it's going to cost to rehab this property to even come close to the $615K comp, especially without pictures of the $615K comp, but as far as just a middle of the line market goes, I am guessing it would probably cost around $50K to rehab.Now if the comp is bigger, then adjusted for size and rehab costs, I'd offer somewhere around $350K.