I also factor the insurance, hoa dues, garbage collection, snow and lawn, utilities, advertising, maintenance/repairs, CapEx, and property management.

Most reo’s, and essentially all short sales are sold with clear title and title insurance, and it would be a condition in your purchase agreement.

I just had a client go that route instead of FHA 203k as it was less expensive, no upfront MIP, cheaper mortgage insurance, and MIP is eliminated once loan amount is paid down. 

Your expectation might be different than the contractor.Generally both parties have insurance and all that, but there is shared liability in the project.  

The good thing about the fees is that they cover some of the expenses lawn and plowing, much of the insurance, trash, sometimes water/sewer.The big thing is to read the association bylaws concerning rentals, often they require owner occupancy for one year, or they a have limited number of rental units.

They redeem and pay you for taxes plus interest plus insurance plus value of repairs and you make a profit.

As a result, the Purchaser lost his Deposit. the Purchaser sued and won, paid by the E&O Insurance from this Attorney.Just yesterday, Kevin, who is very frustrated, went to the Seller's Attorney's Office to talk to him and find out why the Deposit was being help up.

The lawyer's errors and omission insurance, will pay you.

I have a bi-yearly contract with them to maintain the units and they currently have a new policy where they check for mold in the duct work by an intrusive method and they are finding slight mold growth and are recommending this device called Nasa Air Scrubber (~$1200 per unit). 

Ask your insurance agent about an umbrella insurance policy.