If you buy distressed, leverage your cash against hard money and put 10-15% down and rehab the property.

Cash deal, using a wholesaler.

But, many times the children do not want their parents' name dragged through the mud of foreclosure lawsuits or foreclosure notices, and are also fearful that it might affect their inheritance in any other assets, such as cash or other real estate. 

I currently have around 200k in cash that is yielding 5 percent in my brokerage account.

It has been 100% occupied and currently returns a positive cash flow of $1,000.

If you just don't want to pay him upfront, ask if he can put in the order and you can pay for it.

I effectively got it for free and was able to make some renovations as well, now this property cash flows and has great tenants.

So if you have $250k in equity, I would be using $50k total max and buy something small that has appreciation potential and cash flow.

I am in this boat as things stand and have a very long outlook on the property that is not cash-flowing.

**Construction Delays:** Projects can face delays, affecting your investment timeline and cash flow expectations.