It is still possible to have a positive cash flowing property but you have to be smart, run the numbers and hunt for the right deal.

Happy to provide more info if someone can guide on this 

We have been proposed a deal where we would renovate the sellers duplex from a 2 to a 4 and while doing that, our sweat equity would earn our down payment To purchase the property through them.

Now SD area isnt cheap so if you arent careful and have the right guidance you might end up buying a crap deal.

What made you interested in investing in this type of deal?

You could take them to small claims court, but even if you win, you're unlikely to see the money and will have spent a lot of time dealing with it. 

It’s probably beating a dead horse but it just depends on the deal, but I would say there are still deals to be had for sure, just having to look a little harder.

What made you interested in investing in this type of deal?

This could be a good or a bad deal, we don't have enough information.

He did all the work finding this deal and negotiating the great price so I agree he is entitled to some sort of acquisition % fee.