The buyer then gets stuck with a house that is not rehabbed to the buyer's expectation level and the property does not have the anticipated market or rental value.

This project is a value add, therefore we project year 1 vacancy to be at 5% and Year 2 is where we anticipate turnovers due to the rent increase, therefore our vacancy rate is set to 8% (approx. $15k increase) for the 2nd year only Management Fee - the management company is my company therefore we will be managing in house as why i am able to quote 4%. 

I'm assuming you're not planning on selling other (like class b) bldgs in anticipation of a great crash and the hopes of buying them/similar properties back at a discount?

Lately I have seen people continue to buy houses with the anticipation of appreciation built into their flipping strategy.Even though California is barely slowing down its something you have to watch closely

One thing I'm trying to bring up is us bringing in a Property Management group as I anticipate the workload and phone calls will only increase as we add properties.One thing I'm not entirely clear on is what exactly is included with the PM fees.

So what your saying is the husband conveyed his interests to the wife in anticipation of a judgment against him, or even after a judgment had been made against him. 

If they are still angry now, or become more angry when on their way out, anticipate they may damage your property.

My question to you guys is, how should I handle the foreclosure calls that I am anticipating.

If the appraisal comes back lower than what the investor anticipated then their out of pocket may increase.

The reason for 40% is based on the current economic climate, I’m anticipating many who can’t pay their rent and therefore relying heavily on asset appreciation in the long run.I would use the remainder to purchase extremely run-down properties in good neighborhoods to flip.