I am not comfortable to proceed with this purchase so what is your advice to me to withdraw this purchase agreement and to get back my earnest money deposit from the Auction company?

I don't know how small claims works in TX, but when I had to chase a deadbeat for unpaid commission in Mass, he kept failing to show for hearings.I was finally able to present my case and evidence to the Magistrate who said I could have both a capias (civil arrest, where the defendant is forcibly brought to court) and an execution (sheriff or constable can seize assets and sell them to satisfy the judgement).What finally got me paid was when I gave him a hard deadline and told him that if I wasn't paid in full by X date at Y time, I was going to have his WIFE (also a named defendant) civilly arrested at work.As you might suspect, that got the deadbeat moving very quickly and yes, I was paid in full.

If they don't, the tax buyer can ask the court for a tax deed.

Preferably, at least two of these will be STRs in a vacation destination where we can build a proof of concept, get our processes setup for managing from a distance, and then attract other investors with capital to share in the proceeds of future deals.Financially, we should be ready to pull the trigger on our next property around February/March.

@Stephanie Ro I actually went for a condo because of the best money for the bed/bath combo that is the largest factor in price renting to students, and also exterior maintenance and landscaping and being able to offer a pool/volley ball court/basketball court that checks the boxes for the kids. :)

If you get to court, you will pretty need to declare everything anyway. 

Here is a NJ site with links to applicable revised code:https://nj.gov/dca/divisions/c...In Ohio the tenant would have to make the repair request in writing and you would have 30 days to rectify the problem and if not rectified after 30 days the tenant could escrow rent with the court.

Once we've fluffed the house a bit, we will refi, pay off the HELOC, and go around again.All of the delayed financing options I've found specifically state that any cash from a third-party must be a gift, and you absolutely cannot use the proceeds to pay off a private loan for the original purchase. 

. - Plan 2 allows us to stay in the house while construction proceeds, Plan 1 we will have to move out for up to a year.- Plan 2 is $160,000 cheaper. - Plan 1 overall looks like a better planWhat plan would you prefer assuming we end up staying in the house for the long term and only think about selling much later on.I appreciate all your inputs!

Holds up in court better too.