You need reserves to hold properties.Your area market vacancy is relevant to cash flow assumptions but not to reserves or holding costs.Consider these aspects;Tenant has a crack party and they get busted and the health department shuts you downFire damage, you don't get an insurance claim paid the next day, I never did.

A neutral third party- possibly an attorney. 

@Greg F. yes, 20K - 70K depending on the classes and days you attend and parties, etc.

Counter-party risk is far too high for them to trade with you.

Guess it sounds like Im a bit late to the party tho.

When you go to court the judge will see the seller wasn't disclosing a material fact and will show "willful intent" to cover it up.That will cook the sellers bacon.The contract lays out remedies for breach by either party.

Bring in a money partner who will fund the balance of the holding costs and rehab costs, and split the profits as agreeable to both parties.2.

Everything in the contract seems like a regular sale and it wasn't an REO.By law apparently both parties must first go to mediation.

A lead is nothing more than a hint that some sort of business might be possible, it isn't even a prospect where the targeted party has expressed an interest in a particular business transaction and a prospect  is not a customer or client until they agree to transact some business with you.

Although finding the property was a ton of work, the actual deal ended up being a win/win/win for all parties involved, and it was a nice profit for my efforts.About six years ago I started buying single-family homes as buy-and-hold investments.