Now, if you're sending in $140K and getting the $30K rehab escrow back, that leaves $110.

It is his way of dealing with the idea that he has to leave equity in a rental so the numbers work out as he needs them.John Corey

Folks stealing for the copper or tenants leaving with an extra item in their stuff.He has had problems before with copper being stripped in places he was buying (REOs).

I have rented before and I can not wait to leave if some item is a regular annoyance.

That leaves a ton of room for mistakes, market corrections, etc. as well as more room to add debt financing and other higher holding cost factors.In todays tighter rehab spread market (at least here in CA) a good deal is at 75% and I have even done them as high as 80% but only when I was 100% confident of a first week full price offer on the re-sell, and the rehab was very light and very quick.Example, late last year, I paid $305k for a property that took me only $8k to rehab and it only took 10 days.

Sounds like some court time is definitely in the works, although I wonder if not doing your due diligence leaves you completely liable for your loss.

Some of the dumb money that was overpaying will leave the market so folks looking for real deals will be able to find them.Good hunting.

i want a site where the seller, buyer leave there info. also where seller or buyer can leave there email for updates on listings. thanks

So, I would figure at least $20,000 cost for the interest I would have gotten on a CD leaving the money in the back.If you really do buy it, fix it and close the sale in two months, you cut out two thirds of the hard money interest, which gets it back to profitable.

In fact it's often the sale of a large asset (house) that often hold up final dispostition.This should be a lesson to everyone; it's a bad idea to leave undivided interests in RE to multiple parties.