I agree, carrying that much cash around is a recipe for disaster.However, you stated in the ad that you don't accept cash.

Unfortunately, I just don't have the ability to carry more than one project at a time yet.

A typical SHF looks like this:- purchase price (including closing and fixes) 155K - 25% down with 5%/30Y mortgage - 45K- rented for 1350- taxes/insurance - 1100- PM fees - 8%- gross income (without fixes, vacancy , acquisition cost) - 400/month or 11% CoC.I have a few duplex buildings which carry 18% and few houses where taxes jumped so high that income is 5%.

Be a man that the other party knows can carry thru with your commitments.

Not to say, it wouldn't be a deal worth pursuing, but also don't forget financing and carry costs such as interest on loan, taxes, utilities, insurance etc. on the property during the rehab process.

Hello All,Firstly, I would like to commend the work that Bigger Pockets has carried out to create such an amazing platform for all types of property interests and I appreciate all you fellow members who provide excellent advice on these forums.I recently moved from the United Kingdom to San Jose, CA and after various profitable property renovations and sales in the UK, I felt it was only right to continue the passion I have for Real Estate and move into Multifamily Asset Management. 

REO list price: 50,000ARV: 110,000Comps: 100,000-115,000Offer price: 50,000Home inspection: $500Closing costs/taxes/fees: estimated 5,500Estimated rehab cost: 20,000Carrying costs: 1,500Loan amount: 55,000Out of pocket cost: 20,500 (down payment, home inspection, closing costs and fees)Loan terms: 12 months @ 10% interest + 3 points at closingTotal cost of house + rehab: 75,500Sell price: 105,000Gross Profit: 34,500REA commission: 5% (5,250)Closing costs: 5% (5,250)GC share: 10% of profit (3,450)Carrying cost: 1,500Out of pocket expenses: 20,500Loan interest: 1,000+/-Loan points: 3,100Costs: 36,450Net profit: -1,550Taxes: loss

Most home inspections carry a clause that they are liable for only the amount you paid for the inspection.

Seller is carrying.

In general flippers shouldn't entertain FHA offers if you're trying to minimize the risks of additional/longer carrying costs.