The area you live in is best, you can physically be at the property, and if you have plans on investing yourself you will have a deep understanding of the area. 

The fact that he is a graduate and can't qualify on his own is a red flag for me.My policy is that I do not accept cosigners.

This is where the market is right now if you buy with a rate in the 7s or 8s.The more distressed the property you find, the higher the chance there is for a deep discount and a value add, but also the higher the risk. 

The contract is not assignable, and the 100k must be paid within 8 weeks, or I am in deep poo poo legally (go with me on this!).

I red paper the floor with careful masking around casings, and mask the windows.  

This was a red flag for me, but we kept on with the lease review.

On the podcasts they suggest books...so naturally i started reading books.8 months later, i'm chin deep in a 203k loan and about to close on my first house.

deep in war zones. i think it would take more than a group of rehabbed homes to increase the market and overall feel of a neighborhood.

I understand wanting to be the nice guy, but this guy squatted without your permission and he did it on purpose.All red flags.What else is he hiding?

Account Closed I used to work with this guy - http://www.cornerstonemortgage.com/DaveBrown/Has a pretty deep finance background, very intelligent, one of the largest mortgage lenders in the US.