My $10k example was admittedly unrealistic.However, by way of further background, @Dustin Heiner wrote an excellent article on this topic on his website masterpassiveincome.com titled "What to Do When A Buyer Backs Out From An Assignment Of Contract".In it he suggests a scenario where the assignee decides not to proceed, perhaps after discovering a big ticket repair item that would cost significantly more than the portion of the assignment fee held in escrow. 

There is a great article on the llc vs no llc debate on BP with many comments from both sides. 

Push out Articles, employee handbooks, brokerage rules.

From insightful articles and podcasts to detailed market analyses and investment calculators, there's something for everyone. 

I would recommend reviewing this 5000-word article I wrote on the topic of due diligence (much of which is about the walkthrough).

Thank you and advance.The article you reference appears to be from 2009. 

They may also not account for finishes, or budget appropriately for required permits.Try googling "Comparing Quotes and Proposals from Different ADU Builders" for a full list of what to look for (I can't link here because it's my own article).

Read these articles before investing in the Midwest: https://www.biggerpockets.com/forums/12/topics/1171104-the-m...https://www.biggerpockets.com/forums/48/topics/1159104-overl…

You should look into DSCR Loans - many investors like yourself typically move to this loan product once they max out with DTI/qualifying conventionally - a bit higher in rate than conventional mortgages - but no DTI ratio or tax returns/income verification makes a much easier qualification process and LLCs are 100% ok (even as sole owner) and actually often preferred.PS - published a 10-part article series here on BP last year on everything you'd want to know on these loan types - sharing links below, hope it can help!

I wrote an article about the screening process for BP, you can check it out here.To directly answer your question, we require 2.5x the rent for gross household income.