Switching the utilities into their name without safeguards in place—knowing the tenant might act out—seems like a misstep on their part.While it’s true you’ll ultimately have to cover the cost, it doesn’t feel entirely fair for you to shoulder the consequence of their decision.

If you’re considering leveraging hard money lending (HML) for this flip, it could be a strong alternative to traditional financing—especially since HML is quicker to secure and designed for investors aiming to flip properties fast.With HML, you’re typically looking at covering a significant portion of both purchase price and rehab costs, which keeps more of your cash free for other expenses or emergencies.

So, if you bought  a house for $300k and wanted to sell it 2 years later you would need to sell it for something like $600k to break even and cover that HUGE mortgage interest penalty.

@Dustin Horner 10 units probably won't even cover PT.Unless you plan to scale to 50+ units, you're probably better off hiring a PMC.

Obviously the HOA is keeping values in this neighborhood down because an owner would have a mortgage plus another $715/mo for the HOA, which only covers use to a community center but nothing else.Besides holding costs, is there anything else I should be concerned with for a flip on a land lease? 

Even with potential vacancies or slow periods, the demand for rentals should keep things stable enough to cover expenses.Ultimately, I think Memphis is a great place for your real estate investments.

I'd suggest using a minimum of 25% of gross rent to cover expenses on paper until proven otherwise on any given property.Only you can decide how much cash flow is acceptable but I wouldn't consider something that essentially breaks even.

But for large multi-family, that amount hardly covers your legal fees for one transaction, let alone down payment, due diligence costs, lender fees, other closing costs, etc.

Interesting that this seems to cover all property zoned residential, with no apparent carve out for a transaction of residential property between two investors.  

If so, that should be covered.