People can say what they want I've negotiated down to $5,000 for a non-performing assets. 

While you may be exempt from the DF Act, you are still subject to predatory lending issues, too much financed, over priced property, borrower placed in a position where they can not perform, lacks ability to pay, and other matters may apply.

Please comment on this as I want to know investor's opinions about how accurate these type of articles are.http://money.usnews.com/money/blogs/the-smarter-mu...and http://www.realtytrac.com/news/real-estate-investi...

Perform your due diligence as always. 

I think it gave the most accurate estimation of the properties worth after rehab is done.    

That would be far cheaper than not being able to perform and ending up in a lawsuit. 

The option is in effect only as long as the lease is performing.  

In order to reduce unforeseen repair costs, do you recommend the investor perform cosmetic and light repairs on the property.? 

When I do modifications, I usually like to set up a tax escrow as part of it, but the additional servicing cost and the borrowers past performance in paying taxes without escrow has to be considered. 

I need real comps when it comes time to figure the accurate number when speaking to the prospective seller.