What legal things need to be addreess with a private loan to not have legal issues and how come equity partnership wont have legal issues.

@Jack NiI would spray vinegar in the tenants eyes for letting them destroy the property before I’d fool around with getting Fido to stop eating it !

Stick to B/B+ (A props are good for appreciation but the PITI almost always destroys any potential cash flow) in secondary and tertiary markets.

I'm a gc and I agree with your GC ideas somewhat.I agree for any REHAB job under 40k, you dont need us and a real GC wont even touch those jobs.Me personally I don't even look at a job unless the budget is 200k and above

While I can see the appeal of going with a cheaper used unit, there is no guarantee it wont succumb quickly and out your right back in the same situation.

I’m guessing the owner never did his yearly inspections and paid the price as that house was totally destroyed ...and the smell!!! 

I had a tenant destroy a new construction home to the tune of 40k plus .. my insurance covered it since it was not normal wear and tear.. and i subragated the claim to them and they went after them criminally.. this was in Mississippi.. 

Many of them could not be built back if they were destroyed - at least per zoning laws. 

HMLs wont normally lend 100%, but some do allow you to borrow funds for the down payment, therefore allowing you to do l the deal with no money out of your pocket.

My next thought is that you wont need to wait a year to get 3.5% down for the loan as that is only 5-7k + 2k in closing costs.