, plus the opportunity cost of having your funds tied up in the meantime, especially if she decides to file BK.Also, if she's a friend (or even just someone in your social circle), be honest with yourself about how likely you'll be to actually foreclose on her.

I know our area has a fee they collect from every licensee and it adds to a restitution fund for instances like this where consumers can get their lost money back.

Did any of the improvememts raise the value of the property?

You will need to build reserves for these things or have another source of funds available. 

If you use outside funds it makes the tax situation tricky. good luck!

I really just want to see if my numbers for Hard Money look reasonable if I were to try to get funding with as little of my own money on the deal, as well as get a sense of how low I would want to go on price in order for such a deal to be worthwhile.

I did get approved for an unsecured SoFi loan and looking at obtaining LOC’s to fund this deal. :-)

I would recommend doing both, setting aside funds to support things that may pop up and pulling out a vacancy percentage.

@Charlie Mitchell, I believe this all depends on your market, the funds you have available, or your ability to negotiate any type of seller financing.

Raised rents, cured some different maintenance, installed professional management.