I also understand that I need a third party for the transaction to occur.

But personally I like to have $20k in reserves when I take on a new property, for days when a sewer line needs to get dug up and replaced and the furnace decides to crap the bed at the same time (for some reason these things like to occur simultaneously in my experience, and just as a tenant breaks their lease usually). 

This is the main reason finished living space in the basement usually does not pay - it is pretty much never worth what above-grade space is, the exception being a home built into a hill where the house is designed around the feature, and half the basement is exposed anyways.While improper slope around the house can lead to water in the basement, the really expensive problems come from shifting, which almost always occur from the lack of appropriate back-fill, the presence of clay, and the fact that the clay absorbs the most water and therefore expands the most during the freeze.

I have already spoken to the insurance company who is doubting coverage since the damage most likely occurred prior to my policy from improper winterization.Also spoke with lawyer who is doubting we would be able to prove fraud or negligence against the seller. 

The reason I am looking for a PM is because I have a full-time job and am not in the area every other weekend already so I am worried I would not be able to give proper attention to everything that may occur. 

But buying with Hard Money should still be a lot less out of pocket.It was also mentioned above that lower loan amounts and having a "seasoning" period might occur....and that is possible...so we need to interview lenders beforehand and only work with ones that DON'T have these restrictions. 

The police are usually aware of the activity but it takes time for them to build their case and do a raid or for shootings to occur which warrants the police attention.

Whenever an Owner Financing occurs this keeps both parties in Clear view of all expections, thus leaving less if any room for default.

This is in addition to the constant other property tax increases that occur every year. 

For example if they were taking a portion that impacted the traffic flow to your center for access or taking a piece of your parking lot that affected your parking spaces to sq ft ratio for the tenants and customers.Another example is if they changed turn lanes or lights to where (STACKING) occurs.