If you turn the deal just right and flip it in nintey to a hundred twenty days you should be able to make a hefty profit based on the numbers you described, and you keep it all.I think the most crucial part of doing these types of rehab and flip deals is to make certain that you are on very solid ground in your market value assumptions and also do a very tight estimate of the rehab costs.Some of the rehabbers we work with spend most of their time concentrating on these two areas and making sure that they have a good exit strategy.If you are comfortable with your assumptions you will make more money with a hard money lender than with private capital.

Make sure the gaps on the cabinet doors are equal.

Many sellers will charge a pre-payment penalty equal to their tax liability, which means you'll be paying the gains on the sale for them, know what that amount would be and if you're paying close to market rate for the property, I suggest you not to the deal unless they change the penalty.

Performance history is crucial to keep at 100%.The second reason is that you will be in a much stronger negotiating position when you know what properties and at what price points your buyers want.

Jeff the problem with interpretations of things is you will see it one way and the government or a banking entity will see it another way.Some look at the lender taking the hit as an implied agency.So your prime fiduciary duty to the seller and then secondary to the bank.Many ways to look at it.As a licensed broker I simply do not get involved in these types of deals.The pay day does not equal the headache or the risk to the license.This is where to an investor the payday might be so large that they take the risk but to the broker/agent it's not worth it.

Accurate comps are crucial.

You could double hedge with entirely leveraged RE for the possible runaway inflation and have equal cash for runaway deflation.A company that has equal cash to debt is thought to be pretty healthy.

Leslie, Short answer (from the perspective of a Colorado Realtor/Investor) is: Case #1: The Plaintiff now has a lien equal to the deficiency balance of $85,453 + the $2,500 bid price against the defaulting borrower.

In California, a "professional" tenant can make life a living hell for a landlord unless they have somebody equally experienced to combat them.Never bring a knife to a gun fight.

So just imagine the property when it was first completed, that should be your guideline to rehabbing) minus PURCHASE COSTS (home warranty, fire insurance, title and escrow) minus OPERATING COSTS (months vacant either sold or leased, yard maintenance, utilities, garbage, water) minus MONEY COSTS (traditional bank loan, lines of credit, private money, hard money, interest only, points at close on escrow) minus SALES COSTS (Brokerage fees, Property Taxes, Title, Escrow, Buyers Concessions) equals YOUR BUY PRICE.