It doesn't look like they have any positions for Charleston, South Carolina.

Having said that, long-duration (6-12 month) put options, that are out of the money (the market would have to decline at least 5% for them to start generating positive $ returns) are not that expensive.

I am almost positive its his own money.

IMO, if a financial deal will make you declare bankruptcy, then you aren't in a financial position to be buying real estate.

Off hand, I'd think it's probably putting you or the finders in an illegal position acting without a license, but can't say as I don't know what the relationship is.

Foreclosure of second position lien?

I have managed to come out unscathed with two sets of renters and a positive cash flow due to great deals.

Without knowing the amount of equity, positive or negative, we can't advise.

As a newbie, how can you factor in these expenses to see whether you cash flow is positive?

All which places you in the best position to extract a portion of the revenue.