Tended to leave off some categories of expenses completely5.

From what I have seen, the typical remedy is termination of the contract, refund of the EM deposit and all expenses incurred by the buyer during the failed transaction.

That could be a good opportunity, but underwriting of a seller-financed fix-and-flip deal requires careful analysis.

They are expensive, but that keeps only the serious players coming back.

Properties in flood zones are harder and more expensive to insure, which lowers their perceived value and makes them more difficult to sell.

Not sure your situation financially but even your $100,000 HELOC is going to probably run you $12,000 additional each year in expense that you've got to factor in.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee.

**As investors, you are closest to the consumer (home buyers/renters), so you tend to absorb costs and reduced profits from unexpected spikes in expenses that wholesalers or contractors pass on to you!

I was one of the fortunate ones that was able to get out of the contract and after all expenses (forfeited deposit, legal fees, holding costs, etc) lost less than $20k.