Finally I learned more about it and realized that it's just a lack of education.So to answer your question, if you are in an area that really doesn't allow for cash flow, my assumption is usually one of two things: 1. the owner bought the property decades ago when it was cheaper (whether they meant to or not or even knew what they were doing), or 2. they are losing money at a decent speed.Although, with all of that said, the 1 and 2% rules are much harder to come by these days than they were even 2 or so years ago. 2% is pretty much out of the question unless you buy in the ghetto, but 1% is still decently doable in a lot of markets.

***My question is where do I start with trying to find a good price to throw at him so that we can purchase the property so my Mother-In-Law won't lose their current church location while the new church is being built????

With hud unless you're an owner occupant you will probably lose your earnest money if you back out due to inspection issues.

You should compare this cost to what you will lose if you renig on the deal at the closing...I would say this is not worth panicking about...If the analysis you did pre-bid was good (cash flow positive !!!)

( here is how good transactions go down)  Most win and some lose its a investment and most can be controlled if you follow the correct processes ...  

I was thinking of selling the second one and discovered that getting out is not as easy without losing money as purchasing since I purchased it at close to market. 

One issue is losing my 2.99APR if I go through a traditional refi.

Nobody likes losing money.

I'm looking to get started in real estate with emphasis on buying and flipping and wholesaling for starters.

Hi Devin,Of course there is a catch... no matter who says what, the system will cost money and so will the installation and someone has to pay of it... either up front, during a period of time or at the end.If you are not paying for it up front then when you turn around to sell the house the buyer will have to pay for it and this has caused a lot of buyers to lose interest.