Because most properties pick up more value and can be refinanced after rehab to a lower rate loan; almost no one ever keeps the 203k loan in the futureBe sure to have a great well recommended HUD consultant who gives you great service and writes a detailed Scope of Repairs document  which identifies any Mandatory repairs, Recommended repairs and Desired repairs so you know how much this will cost and can adjust down if need beAsk for a 20% contingency reserve instead of 10% just in case; if you dont use it , your loan reduces at the end by that amount and you dont borrow it- it is used for unexpected costs discovered during rehab not in the contractors budget or SORShare a BLANK version of the SOR called a BOR with  the contractors which lists lists all task and material qualities and labor needed but NO cost on this one so they bid honestly Be sure YOU understand you have signed a binding CONTRACT with the contractor for the work on the SOR at that COST.

I “knew a guy” that would put a blank key in the door lock and with a hammer, snap off the head so the key was stuck in there.

Are you celebrating any special occasions?

I have a couple friends who recently moved down there and within the first 2 weeks they have already been robbed and shot at (on separate occasions).

I'm in agreement with everyone else here.I used to drive down that area for over 6 years (still do on occasion). 

My long term goal is to buy a 3/4plex here in LA where the rents are basically write your own blank checks.

I have reached out to him on multiple occasions and he hasn't really responded.

From my research and discussions with them on two separate occasions (once when they first announced the lending program and again a month or so ago), they are very much for real. 

All fill-in-the-blank. 

Introduce yourself to every realtor in your area and give them a flyer , host a wine and cheese for them to view the prioerty and point blank ask them what they would do to sell the property.