I think his methodology is as much human nature as it is financial.

A friend is looking for ideas for next deal, here is a financial snapshot - hopefully some of you w experience can give ideas of what you would do in this case.

I fear the financial stress will be great without having anymore additional income than my 8-5 job.

(IE, financial freedom is when my investments pay $5000/month in cash flow.)

One of the main reasons why I want to do real estate is because after losing my job last because to a merger, I wanted to have another way to provide for my family and to reach financial independence one day.My goal is to become a buy and hold investor, buying duplexes and multi-families in my area and possibly out of state. 

I didn't begrudge folks who were in a better financial position than me for driving up RE costs.

Any one financial statement doesn't say much on its own.

I'm trying to asses what financial impact this change will have.

Something like this, just off the top of my head....you can probably find some cancellation notices/addendum online.As per the contract dated____, between xxxx and xxx for the property at xxxxxx, I am hereby terminating the contract as per the inspection clause, paragraph xxxxxxx.Both parties hereby agree to terminate the contract, relieving the other party from any further obligation, and the earnest money of $xxxx shall be immediately returned to buyer xxxxx.By:   Buyer xxxxxx____________________________.  

Are there any legal obligations?