He calls me and says; "I have 123 under contract for 25k" ARV is 100k and it needs 35k in repairs.So taking a quick glance at the numbers we're looking at between 30K to 40K in profit assuming all goes well.

It assumes rents of about $500 and 6% rates on loans.

With management fees and $300 a unit a year for upkeep, I calculate a 8% cap rate (assuming full asking price).

Lyndsey Keller this is just my opinion but lets assume you changed your leases for rent to be due on the 15th.

Neither had any criminal record, I'm assuming he was just blowing hot air.

It has rained the past 4 days so I assume many older homes in this area would have damp basements but there was about 1/2" of water in 1 corner of the basement when I viewed it tonight.Now since I am past the P&S and this issue was not raised previously, is there anything I can do?

So, let's assume the lease is up after a year.

That's assuming the tax laws stay the same, which of course can always change.

Instead of making a deal based on the facts as of today, these deals are done by assuming performance in the future, assessing the likelyhood of a prudent person acting to cure loan qualification issues.

Assume the worst for repairs and actually getting the current tenants out and make your offer based on that.