This way you cash out of pocket is limited on wholesale deals.

There are many that feel condos and townhouses are not great for fix and flips for variety of reasons: higher holding costs (hoa), limitations in improvements due to restrictions from hoa, could make you submit insurance, license, etc.

Your best measure if there are a lot of rentals is to befriend a realtor and get the comps that have rented in the last 12 months.

Sure recipe for disaster, in my opinion.Would also say a big resounding NO to debt - find an affordable market (and you don't have to limit yourself to your own back yard, the world's full of those at any given time, even if there's nothing around your home town at the moment), and don't give in to the temptation of easy money.Kenny Estes wrote a great piece about that one, and I couldn't agree more - http://www.biggerpockets.com/renewsblog/2013/07/24/real-estate-leverage/(all of the above is just my opinion and experience, of course.

It is widely known that there are saturation limitations for underwriting loans regarding occupancy of the condos in a complex.

How about the idea of putting something in the lease that will motivate the tenant to turn in the checklist within a certain time limit?

Thanks everyone for your quick responses.In general I'm just trying to understand the limitations and benefits for using that line of credit.

If you find a guy with 20 properties you will find multiple banks loaning the investor money because most of the small banks limit outstanding loans or cap the total outstanding loan amounts.

From my limited understanding and searching around on google, it seems appraisals are mainly important when there is a loan of some sort involved.

Investors can pick up VA foreclosures with limited down (5% if I recall) and you don't need to be veteran to qualify.