If you purchase the house and act as the "builder," you obviously take on more risk (if they back out, etc), but increase your margins.If you haven't flipped a house before, I highly recommend not doing your first as a custom renovation. 

I had mine custom cut in fdl wi at manwske welding.

If you don't want to spend the money on an attorney there's always the option of small claims court (called Magistrate's Court, here in SC).  

I have heard of this company, but if I recall was more of a seminar type program, that offers free teaser weekends or seminars, and then wants you to spend big bucks to learn more (and most claim it got them no where.

@Elena Jobson  from what you describe... anyone telling you to get a lawyer is very poor advice the money you would spend on a lawyer would be more than to fix a few plumbing leaks and a dishwasher that probably just needs the plug taken out of it.hot markets are like this.. in many markets you only get an inspection for your benefit the seller does no repairs its that hot.if you really think you have a bone to pick this is what small claims is for. along with checking on the permits.. if this is a licensed contractor he may have a bond and any contractor does not want a complaint filed. these things happen we build brand new homes and there is always a punch list. and such.. its just common.

The tenant is your customer, so make sure you understand their needs and your own as a property owner before selecting which geography to invest in.

The catch is that when I sell the house, the IRS says I have to recapture all allowable depreciation, regardless of whether I actually claimed it or not.  

yes, we were going to obtain the mortgage personally and quit claim after to the LLC.  

The question I have is there is about 17K against the owners in the civil and small claims courts, 15 K to a bank (Discover), 2k to a local business and 300 to a local business. 

I've had some applicants provide the name of their current landlord as a reference, only to check Facebook and learn this supposed landlord was actually their family member who didn't even own the property they claimed they were living at.