You definitely can’t get agency paper so your looking in the right place (portfolio lenders)

Sounds good on paper, though.Should tip you off that, even if you owned the note, you need a seller with standing to comply with terms if any short sale.

Seems plain and simple on paper, but reality is bit tough.

I avoid the reserves + R&M estimate debate as those are property specific (and, many times, investor specific based on contractor network).IMO, going from $500 to $700 is an important change in tenant class and also important to the long term viability of the property to where cap ex will not eat up your returns.On paper this looks good.  

What should be happening: the title company does the title work, guarantees there's a clear line of ownership on the title, title insurance company issues title insurance, closing is scheduled, final walk through, sign papers and transfer funds, get "your copy" in the mail a couple days/weeks later.

There is a paper trail, so it is not smart to play those games. 

I also vote no-go.If everything goes perfectly, this deal on paper works, but we live in a world with vacancy, improvements, modernization, property management, and surprise issues (roof needing repair, needing a plumber, fixing the garage door,..)If your goal is to buy an investment, I can help you find better deals in the Twin Cities.if your goal is to buy something close to where you personally live at this point in time, you already have the answer.Again, I vote no-go.

It was amazing is how often they'd walk in with a pile of papers, and just keep bidding on ONE property far, far, far over what the experienced buyers were willing to pay for it.

Like was mentioned use the tissue paper test.

They are choosing to use your rent money for other things, it's your job to enforce your lease to the letter, otherwise it is just a piece of paper with no real consequences.