Also, in reference to the dozens of lowball offers, are you presenting the owner with an actual Purchase and Sale Agreement or do you have a simple 'Offer Letter' stating your intentions - or maybe just a phone call?

I hope I have provided enough info, or @ least you all now know my intentions.

So many people have good intentions but get themselves locked into information overload.

I have no intention to buy anything big in the next 3-5 years).

If I buy something with the intention of rehabbing/flipping it, I run the risk of not being able to get a reasonable appraisal, which is one of the biggest risks in that business.That said, I may also look to see if I can find REO comps or comps that aren't on the MLS (private sales that never made the MLS).

The addendum will have the proper wording that will give constructive notice of your intent to re-sell at a profit.

Your next question should be, how did you get paid and teh answer is, you have your edn buyer fund the total costs, including your profit margin into escow, and instruct escrow that you overfunded the escrow account intentionally for accounting purposes to cover some fix ups and to wire the overage to your wire instructions (your bank account).

His intent is to purchase them on a 20 yr note and have them as rentals.Both 2nd's mortgages are 30 amort. w/15yr balloon at 9% and 13.75%.

Buy buying somebody else's failure and turning the switch, you can be profitable.I do agree however that I would personally not buy an owner paid utitilities building with intent on keeping it that way, as Mike stated, your tenants have no skin in the game and thus will run up your bills to kingdom come!

You won't be making those offers with a letter of intent.