The house is rehabbed really nice and the buyers have no issues with the rehab. however most interested buyer ask about the engineering evaluation report which i cannot produce, Hence i am having difficulty selling the property. 

I have a deal in contract at 50% current value (MLS comps using two agents) and i'm willing to put 50% skin in the game.

There are a million ways to skin a cat in real estate.

I am having difficulty finding laws pertaining to this.  

It sounds like I just need to have my own skin in the game with cash.

Hello, I'm just beginning to learn about real estate investing and am having difficulty deciding on whether to buy my own condo here in Los Angeles as my first property, or to invest in cash flow rentals in Phoenix or perhaps Palm Springs.  

However, you must develop a thick skin when the city calls you or an "eager beaver" who looks after the "aesthetics of the community". 

This is a healthy risk from the lenders perspective as you have a lot of "skin in the game" and are unlikely to walk away from the project/deal. 

As I said, I am having plenty of difficulty finding properties to meet that metric, and I agree in some markets, working off the MLS especially, you will have your work cut out for you.

How severe the downs will be is a guessing game because there are too many factors to consider (not only within the real estate market but outside factors that can affect the real estate market as well.)I do believe this time around we are much less leveraged; more buyers bought with all cash, the financed buyers have skin in the game and had to prove how they can repay the loan etc.