It bears repeating: stick to your numbers.

To me it’s an incredibly large burden to bear to take other people’s money (whether it be friends, family, or strangers, or even the bank’s for that matter) and have them trust me with it.

Of course, bear in mind whether the prop has been rehabbed yet or not, but even if its still in rough shape, you should be able to assess the neighborhood quality virtually.

It seems like an appraisal should be independent of this price paid for RE investors, but no one can seem to bear to appraise for more than that. 

Bear in mind that all changes happen at the margin. 

This would have a bearing on your cash flow.I don't know much about multi-family properties.

Just for the fact that he did not put your deposit in an interest bearing account and did not send you the letter (within 30 days of receipt) telling you where the money was, how much, and the account number: They broke the law.

If you're looking to rehab and flip it yourself, seller financing can really grease the bearings of getting the deal done.

This is my first ever post after the initial Hello, so please bear with me :)1) Is there ever likely to be a case where a house is purchased through the Public County Auction system where people - the original owners or renters, maybe even squatters - are still inhabiting the property and have to be evicted by the new property owners?

This security deposit needs to be placed into a separate interest bearing account3.