Bear in mind, these are usually short-term loans and you will need to sell or refinance with a traditional lender once the repairs are complete, depending on your strategy.

I completely agree on the clubs!

When you get your monthly report make sure you understand it completely and be sure to question anything you do not completely understand or agree with.

I am concerned about liability primarily but casualty as well.

I have completed a few flips and have a few rentals as well.

I have done a flip before and rehabbed some rental properties so I am not completely new to it. 

After completion of each phase, I will refinance through a local bank.

Main problem is, there is what looks like 1-2 feet of still dark water sitting in the basement ( completely concrete unfinished basement no drywall or flooring).

If not, then if you have a complete and revealing walk-through video, along with still pictures, you likely have this landlord where you want them. 

I am trying to figure out what the best thing to do for a friend is in the situation outlined below:Home Value $570kowed 1st mort $496k (current loan was modified and principal reduction completed for $100k reallocated in form of balloon payment at end of loan term)no 2ndarrears $30kIn process of going through bankruptcy, however, want to complete a lease with option to buy.