I had frozen pipes in my house and in order to drink my pre workout coffee I had to use water from the toilet. 

Unless you can somehow work out a side deal with the wholesaler, buying from wholesalers with a 203k is tough.  

Has anyone ever come up with a formula to solve when to hire work out?

Do you have cash to close deals if the assignment doesn't work out? 

Inventory is low enough and there are enough house hungry people here that it will sale, but it obviously won't be full ARV.1st Principal: $270K1st Reinstatement: $75K2nd total balance: $97KOther taxes/liens total: $25KARV is $550K - again we won't update it to that level, but $510K-$530K is likely.We won't have significant money costs for the small amount put in (reinstatement + minor repairs/cleanup), and my partner who does hard money loans is a licensed broker so we'll be able to work out the listing commission.So it's not upside down, but margin is too small for most professional rehabbers. 

Trust me, there were plenty of loan workouts and government interference then too.

Let the contractor go as soon as you realize they can't get the job done, are not trustworthy, or it's just not going to workout.

Then we ask them what would be fair, and work out something out.

I also do month-to-month for credit issues so if it doesn't work out in normal times it's not a problem.

You just need to work out a deal based on your numbers and what the property can afford.