Lisa,I would think to get an accurate picture of the financial health of the deal you need to account for the 278k you will be using to purchase the property.

So my mom rents a 1 bedroom of a 6 unit building.She is on the ground floor.My mom is older so the size is manageable for her.3 days ago she calls me.Apparently the ceiling in the den in back is leaking.I go over to take a look.The leak is right in the center of the room above a ceiling fan.I immediately turn off the power for the breaker switch to the back.My mom calls the landlord and apparently the tenant upstairs washer implodes or leaks etc. and water is all over their floor.The landlord says he has stopped the leak but that it's 1 a.m. in the morning and he can't run the shop vac until the next day because of the other tenants.So over the last 3 days the landlord hasn't even came by my mom's apartment.I took digital pictures of the damage and we tarped the floor and furniture and have 2 buckets to catch the water.Even though the leak has stopped (according to him) it is still dripping slowly into the buckets.Half the ceiling I would say in the back about 3 4 by 8 sheets are sagging and some parts have fallen down and the insulation is exposed.I told my mom that the ceiling fan will have to come down,the electrical wiring inspected,the ceiling areas with damaged pulled down,and the insulation taken out.The area will have to dry and then put back insulation,drywall,new ceiling fan and finish.I am watching this guy like a hawk to make sure he doesn't rig it.This has happened in some of his other buildings with a pipe leak and he let it "dry" out and rigged it.The other tenants complained of being sick and having mold in the unit and moved out.This guy has another business and self manages about 20 units.I am concerned for my mothers safety.The last thing older people need is mold and mildew issues for their lungs.He will repair in the correct way.If he does not I will have no choice but to take to court as my mom's health is paramount.I ma hoping he will do the right thing as he has in the past.I can't get over the fact it's been 3 days since the incident and he still has not fixed it or checked the electrical.If this was my building I would handle it immediately.Just wanting to get others take on this and what you would do.The buildings are 20 years old but in a nice,safe area and my mom likes her neighbors.

When you don't deal with professionls the result can be a real pain in the butt.

Jennifer,Good for you to take the plunge into wholesaling, but flipping contracts on short sales is probably the biggest pain in the butt out there!

A "material fact" involves health, safety or welfare, or is a fact that would naturally affect the buyer's decision making process.

Homepath was the name of the program.How much of a pain in the neck was it get the financing through this Homepath program?

As Jon mentioned, it can be a pain when you start out.

My only experience with rehab and hard money was 4 years ago and lets' just say it was a painful learning experience; bad choice of home, bad tenant, etc.

I work for a large health insurance carrier and let me tell you, it does not take that many bills to eat through $100,000 of coverage.

All joking aside, it's pretty amazing what this organization has contributed to global health, education, etc, over the past several years:http://en.wikipedia.org/wiki/Bill_%26_Melinda_Gates_FoundationBtw, having worked for MSFT for a long time, I can promise you that employees of the company make a LOT more jokes about their own products than people outside the company make...there is plenty to joke about