I cant blame the guy though, Brooklyn deals are bought with negative cash flow, because the appreciation rate is incredible right now.Its crazy out there.

I am wondering if the credit crunch on the mortgage side has negatively effected their plans to sell their properties. 

That is part of my personality indeed, but sometimes I do not know when it may be a positive or when it may be a negative.

I emailed them asking for statistics for the last few years, esp where the Vallejo ferries have been dropping off.

That they were made aware of the HELOC from the beginning of the process and that their lack of timely action in no way should impact you negatively, and that you would have pursued other options previously had they informed you of the delay.

Unfortunately that works in the negative too.The best thing is you're making a trip here.

Is this a "plucked from air" statistic?

I'm new to REI and will start a Direct Mail campaign in the near future. we got into the game for the sole purpose of acquiring a multi family for rentals. fast forward 3 months there are no deals on the MLS i actually came across one property with negative cashflow (that's with real numbers i.e. no pro forma)  so i'm starting this DM campaign for the purpose of finding something to buy and hold ie. flip it to ourselves while i wholesale others 

Not sure of the time frame they used but at least it's based on actual statistical analysis.

To get 466 and 501 Is about in the bottom 15% of all credit in the U.S.You have to have a ton of negatives to get down that low and I mean a ton.Something isn't matching up.