If you look at my profile I explain my deals a bit and talk about the strategy that has been working well for me (small multifamily with a value add component). 

The second component is the loan.

They are washed meaning the suspects erase the persons name that you put on it and replace it with another and they cash it or deposit in an account and withdraw the money before the fraud is discovered. 

i used to think like that about funding my rental portfolio with capital from wholesaling and then i discovered creative financing and thats how i want to start my portfolio......using creative financing instead of wholesaling to put the cash in rentals......wholesaling to get me into creative financed deals

If you had discovered the damage prior to purchase, you could have made the Seller and Tenants work out repairs and then purchased the property after renovation.

@Steve Barrett I am fairly new myself, but what I have discovered is that the best time to invest in real estate was 20 some years ago.

A house built in the 1990s might need a big overhaul as its components are on their last life, one from the 1800s might be on its 5th generation of renewal.

The "risk" as I see it involves three factors: 1) How soon will the system, or any of its components, need to be replaced, which a good inspector should be able to counsel you on.  2) How much will the system or its components cost to replace? 

talking to a client, discovered she wanted to sell How did you finance this deal?

I've been selling my 10 year supply of reloading components for 5-10x my purchase price.