I would include a contingency clause allows you to renegotiate the purchase price or exit the contract without default if there is change in the income of the property.I'm sure you can have a real estate attorney draft something up quickly.Good luck,Makenzie

In fact, there is one being offer by DIG outside Philly this Sat (October 8th).As for plumbing and utilities, this is quite common and just estimate $1000-$2000 for plumbing and $6000 as a contingency for HVAC.

Every investor works the numbers as they see fit but you can factor yourself out of a deal almost every time when your doing 30% of the monthly rent into your proforma as contingencies. 

Contingent that you expect to bring them repeat business.

If not - we will go into second stage negotiations to get a better price.Once we agree that the price is right - that is low enough to make an equity profit - we will than use my pro-active auction marketing system (one that I have used for over 20 years) to sell the property  - all cash in as is condition with NO contingencies with settlement in 30 days.We will advertise the property for sale for 3 weeks and than have a public auction - so as an example if we control the property for $100,000 and sell it for $120,000 - that means we make $20,000.How much do you make if we are successful in finding an assignee? 

They waived the appraisal contingency, so there is a good chance I'll have to fork over more cash out of pocket than I planned on the make up the difference between the price and what I get loaned.This is a hot area of town, and aside from these issues it is pretty much everything I was looking for in terms of size, location, and quality.

You need to see if that margin meets your investment goals and can give you enough contingency for a major repair if and when it happens.

2) When people talk about putting a house under contract, does this mean they've put an offer in with contingency, or is this some form of creative financing?

This deal has more hair on it than just QCD:original owners were foreclosed upon by Fanny Mae;then the property was transferred or sold by Fanny to this bank;the bank has been sitting on it for 4 years and finally decides to sell, butin addition to QCD they want cash only (not even hard money);10% earnest money deposit - I have no problem with it if I can get it back in case the deal does not work out - but they allow forno option period and no contingencies of any kind!

Hi everyone, some of whom I already know :)  I'm of the philosophy that it's possible to buy turnkey from a distance and never see the property...but you HAVE to have those appraisal and inspection contingency inspections in your contract with the provider.