. $200/month with something that will never appreciate isn't much reward for that risk..... for me at least....

They didn't have the answers to those basic questions which sent up red flags. 

Dealing with banks and credit unions, To much red tape!

Conversely, your friend might work harder and be quicker to raise red flags in order to protect you and maintain the relationship. 

  $1600 income on a $1150 monthly payment, after taxes/expenses/cap ex, im looking at $200 a month, however after the rehab, comparable put me at $2000 monthly income, which is $600 net.I still plan on House Hacking the next deal as well, so that will also help cut some of my risk. 

There seems to be enough meat on the bone to cover for most mistakes you will run into.

Originally posted by Account Closed:What are the Red flags while doing a visual inspection?

I renovate using a small stable of handymen, cabinet makers and specialists I have assembled through personal relationships, then I find outstanding tenants whose monthly payments will put me at break-even or better.

#1 I'm a big Red Raiders fan :)#2 Growing City#3 Fair Prices, Fair Rent#4 Good Gut feelingThese reasons may not be good enough but is lots of growth in Lubbock, TX for quite some time and has a pretty good economy too. 

I did talk to the title company first, and was advised NOT to do the search before purchasing the note, since I would have to pay to have it done (again) during the foreclosure process, and the title insurance would cover me at that point.