The California Association of Real Estate purchase & sale agreement has a "subject to" section.The most important issues are to proper disclosures to your seller so they understand the pro's & cons of entering into this type of agreement.

I’ve been reading a lot about flipping contracts and I understand the concept, but I’m still confused about a few things.1.

If you have a broker/agent representing make sure they understand your motive behind the purchase and your contingencies are expressed with full-force of being able to get out of the PA/LOI.

I have learned to mitigate risk with smarter purchases, reserves, reasonable down payments, built-in gains, solid income stream, and not biting off to much at any time.There is risk in everything, but these are large investments of time and money. 

If you are wanting relationships with lenders try to send solid leads over.

I understand closing cost will be another payment amount.

It serves as a designation for professionals actively involved in the oversight and operation of their rental portfolios.Summary of Requirements:To qualify for Real Estate Professional Status, investors must fulfill two key criteria:50% Rule: Allocate over 50% of all annual personal service hours to real property trades or businesses.750-Hour Threshold: Spend more than 750 hours materially participating in specified real property activities, including rental operations.Navigating these criteria demands meticulous attention to detail and a thorough understanding of IRS regulations.

Don't get hung up on the initial cost – focus on value, and you'll be on your way to building a rock-solid real estate portfolio.Let's Chat!

I understand for tax purposes that I can only take two-thirds of the expenses related to the house to offset the rental income.

Multifamily investing can be a lucrative venture but requires careful planning and understanding of the real estate market.