If they caused a problem, they should fix it or pay if someone else has to do it.Sounds to me like you've bought a property in poor condition and the PM is nickel and diming you for a little extra every month.

If in-house, perhaps offer to pay extra to get it expedited (with the terms they're offering, paying an extra $100-200 for the appraisal is still reasonable).I don't think 45 days to close will kill your ability to find REO deals, but it may keep you from getting the "hot" deals that tend to get scooped up in one day.

For rentals, that's all I look for is 4 bedrooms, if it's a 3 bdr I make sure it has a basement so I can add an extra bedroom and bath.

One of them is has an extra kitchen in the daylight basement and a separate entrance, so I could rent out the basement and live in the top floor.

This makes him work hard and earn the rest of your business.

These are the questions I ask of buyers.I know the chance of a deal happening based on their answer.Statistically a direct buyer has the best chance of transaction a deal for me an earning me a commission.The other ways there are multiple times in the deal that things can fall apart and you are back at square one under contract again.

Although, I'd reiterate that a half point is nothing to sneeze at, especially when that means extra dough in your pockets each month.

If you want to cashflow well with section 8 or something like that, then sure, bad areas can work if you're willing to put up with extra hassel for a higher % return, but, for rehab to sell, i personally would pass.

I *think* that you can apply your losses towards future earnings as tax deductions... so you might be OK if you consider the $80K loss as a way to reduce your tax obligations over the next 5-10 years.You should research what you can do with that loss and/or speak with a CPA for the correct answer... but I think it is possible, I know someone still doing it with stock market losses incurred during the crash of 2000.

In that case, having the extra insurance would be nice as I would see equity out of the situation.At the end of the day, I can pay an extra $15 a month and cover myself better...