thanks alot guys, ill keep the site posted on my RE Investor journey 

@Tom Giles I'm still a newbie, but have been really listening intently to the podcasts and reading the forums and blogs.  

I  am also from the central valley. maybe ill see ya around. have you been to any local RE clubs i would like to start going to some.i wish you the best this year. 

I also intentionally made the repair in my example less than the total of the money set aside.  

As in buying a lot or tear down and building a new home with the intention of selling it when done.

Thanks @Jason Mak, Ill check out the article.

Sounds interesting though, ill ask around here in world of concrete for specs on that, might be useful for my next client.

You must have the intent to reinvest into replacement property, so you must also be careful when refinancing property. 

Right now is a dangerous time IMO, to take a property with the intention on refi in 2 years as the fed has stated they are looking to raise interest rates.  

I mean ever.Yes or no, not maybes.The letter of intent basically says,Name of owners, property name, today's date, name of prospective purchaser, name of purchaser's company, intention to purchase on these terms as a principal.Purchase priceif lease with option, market rent, 12 month term with extensions, exercise price, etc.If subject to, purchase price, date of possession, date first payment, date of walk through, etc.If wraparound mortgage AITD, purchase price, note payment, interest rate, etc.