I plan on low balling an offer.

Unless you are highly leveraged and don't have much "skin in the game" as they say, your cash on cash return will be very low.  

If you're hurting to sell maybe go ahead and take the hit but if its Low DOM then maybe put it back out there and get some conventional offers that are willing to meet in the middle or make up the difference.

there was a lot of failures in this model with some of the poorer providers who are no longer in business. this led most TK operators to only offer product post rehab and many with tenant in place.. of course the holding costs of doing this must be backed into the end price.So if you can find a VERY good and reputable company that can do pre hab type deals you should be able to get a better buy as it relates to basis in the property.  

A lot of lenders may tell you the appraisal is free however its not free if you dont close you will still pay for the appraisal typically (its only free and credited back at the end or at the closing table).The other part is to make sure rates are where you want them to be (low enough).  

Hi Connor, This is my understanding on this type of loan.The FHA Loan  is mainly an insurance program by the FHA (government entity) that allows low down payment on the purchase.

Unless your in a market like the Bay area were you pay 1.5 mil for the lot and build a nice spec for 200 a foot say 3k feet for 600k  and have 2.1 in it and sell for 2.9  which is common the 15% of project cost work.but if your in a market were lot is 100k   build is 200k and end product say is 350k.. and you pay 30k to the builder that is far to much by double.we hire for flat fee if we are financing the whole job and they are simply acting as GC and have no monetary involvement.  10 to 15k a door. is what we pay.. and if we are so inclined there can be a bonus if we do real well.hope that helps.. careful to tag your jobs to % of gross construction costs you may not like were you end up.

Dues in my property's neighborhood increased by 20% right after I purchased because of a low reserve fund.

Represent a true product and you won't have any issues.

I would think if loans are secured by RE with low LTV, then you should get something back?