While this is likely included in the 15-20% you have for maintenance/vacancy, I would up that number to closer to 20-25%.Overall, you should expect your expenses, vacancy/rent-loss and capital costs to be somewhere in the 45-55% range over the long haul (do some research here on "the 50% rule" for more info).

If anything the program has reinvigorated me to get back into the game.

I'm about to refinance my investment property under the HARP program and was wondering if I should go with a 15 or 20 year fixed.

Why would they do that instead of selling and taking loss?

It sounds like you want to own the asset but not have risk of loss.

First get qualified for financing, then shop for deals ;-)If you do FHA you may be able to find one eligible for 203k program giving extra cash in the loan for rehab.

How are you on BOCA, OSHA, Environmental Engineering, Marketing, Planning & Zoning aspects, obtaing zoning variances, politics in the area, working with utilities and thier engineers, financing projects......I could go on....Point is, you won't get this out of a few books, universities offer degree programs and new grads still are only prepared to assist an established developer.Best thing is to work with one and learn.Many developers were GCs before they started, probably started with a small number of lots and built in phases or got an existing area and built to suit.

Can you explain this risk to the seller and then ask for a "reduction" in price because of the future possible litigation and loss of time??

Joel, my partners sister works at a local credit union and is working on some programs for us, otherwise it will be cash.

You can do this by coming up with an expected annual loss figure or you can just reduce the income by a expected loss percentage.