.- i question your underwriting and ability to make money on a $79k purchase with $12k rehab.  

As the owner of the property that is being severely mismanaged, do I have the ability to move the money directly to my bank through government action?

Without reserves, they might be unable to evict tenants or prepare the units once they are vacant.Great points—walking the property and speaking with tenants during due diligence is a practice we now prioritize, along with running tenant histories through eviction databases.

And those also only have a limited ability at best to generate a balance sheet, which you generally want to include on a 1065 return.came here looking for answers to exactly this question, and David is correct re: why.

Wood has a huge variability in strength--between pine varieties, the stress which can cause them to fail varies by more than 2x and you can see 20%+ increase in strength as it ages.Then I have stress concentrations which will yield and then redistribute the load in practice, but not according to the calculations I'm allowed to do. 

I can see where the bank may be unwilling to make a loan to this particular borrower, or that this borrower may be unable to find anyone to finance them, but financing the purchase of a note is possible.The borrower has no ability to allow or disallow the sale of the note that's backed with their loan.

A terms sheet will tell a pro whether you know what you're talking about and give them a structure of the deal you propose, but it won't establish credibility with respect to your financial ability to pull off the deal.

I self-manage, but I understand that's not a practical option for most people.

The legal action is against people who have no intention of closing or no ability to close the purchase tying the property up with the seller believing the buyer will close when in reality the transaction will only close IF the “buyer” finds someone to pay more than he is paying.  

I appreciate the ability to teach out to you with questions!