You stated you have utilized an encapsulating paint and a signed disclosure as long you have proof of those items then you should be fine from a liability perspective in my opinion.

What if you are the seller and the buyer goes and spooks the tenants, for example talking about increasing rent or switching utilities to the tenants.

Materially, no.

If I knew it was going to happen, I'd "retire" early -- I'd liquidate everything, move my family to another country where people are less focused on material things and are more self-sufficient and I'd start on my long list of books that I've been meaning to get to.

I assume there are utilities to the property, and sewer lines to the property?

,Just as Bill Exeter said, you CANNOT utilize a 1031 on a FLIP.

Its not good time utilization pandering what they'll pay per month in expenses, fees and whatnot or even worse what their end buyer will want or have to pay per month etc.

It is:Gross rents x 50% = Cash Flow before debt service (the 50% includes taxes, insurance, property management, utilities paid for by owner, maintenance, vacancies, etc).Once you have that number, subtract your debt service payment (principal and interest), and you will have the cash flow.Without the actual rents or your loan details, it's hard to provide an accurate example.

Also, read the Ultimate Beginner's Guide, it will give you an idea of how you can get started.Once you have been around and utilized the resources here, you can start formulating a plan.Good luck and let us know how you can help!

You are counting reserves and utility deposits as an expense.