As far as the process goes, it starts with having a good lender that actually consistently specializes in reno lending. 

It also requires a specialized custodian and a bit of extra paperwork.If you do wind up using cash, other savings, or even a combination of cash and other funding sources, there are also creative financing options out there today.

In the past I have texted him on several occasions times letting him know that the state of the yard was unacceptable and he acknowledged that he needed to do better, but I don't have the incidents well documented with dates pictures, etc.

That’s the gold standard especially if you want defensible results and maximum accelerated depreciation.I’m the CEO of Engineered Tax Services, and this is exactly what our team specializes in.

@Jason Marcordes do you guys handle this in any special way?

Best note flow for me comes from relationships first, lists second: I work direct with smaller banks/credit unions’ special assets, property managers and loan officers who flag nonperforming borrowers, and active investors offloading re-performing paper; I’ll also tap a few vetted brokers, but I require full tapes, collateral files, clean chain of title, and recent pay history before bidding.

OPTION 1: OPTION 2: When Seller Uses RE Agent & You're Using Property For a Rental When Buying Subject To & Selling to Tenant Buyer Pro: Doesn't require specialized knowledge Pro: Little competition "Adequate" cash flow - Nothing Exciting Can be little $ down You get appreciation if property goes up Can do Unlimited number Can Get Started Much Sooner Get down payment (Cash $$) back immediately Great Cash Flow No Bank Approval Needed No Maintenance or Repairs Con: Have To Have $45,000 Cash for Down Payment Con: Have To Have $15,000 Cash For Reserves (just in Case) Have To Have $15,000 Cash for Closing & Carrying Costs Due on Sale Clause Have to Get Bank Approval Must learn the technique Can only do 4 -10 properties depending on bank Competing with everyone else Requires 20% Down & other requirements If AC breaks - you fix it If roof needs replacing - you pay for it If toilet clogs - it's on you If house gets trashed - you un-trash it You take loss if property goes down in Value Tenant Can Trash The House When Seller Uses RE Agent & Using Property For a Rental When Buying Subject To & Selling to Tenant Buyer Asking Price MLS $225,000 $225,000 Balanced Owed $223,969 $223,969 RE Agent 6% $13,500 $0 No Agent Involved Seller Brings to Closing ($12,469) $0 So No fees Asking Above ARV $0 $0 Seller Walking Money $0 $0 Sometimes Walking Money If I Use ConventionalFinancing If I UseSubject To Asking Price MLS $225,000 $225,000 Amount Down - 20% $45,000 $100 (I Give $100 Down) New Loan Amount $180,000 $223,969 I Take Over Loan Title Report $600 $600 Closing Costs $1,250 $1,250 Monthly Payment $1,151 $1,225 I Take Over Existing Payment When you are new, looking for lenders & considering Fix & Flip, BRRRR, or rental, as a buyer, I’d ask the owner/seller to be one of my private lenders with creative financing.

Have you had better luck self-managing or using specialized MTR management?

@Jason Harrelll - I've bought directly from owners on multiple occasions using seller financing, subject-too and lease-options.

Quote from @Paul Sanders: Quote from @Jay Hinrichs: Quote from @Paul Sanders: Thought it might be interesting to post an update on this situation.In August of this year, a special meeting was called to discuss updating the bylaws or rules to disallow STR's in the HOA by the board as the HOA's attorneys agreed the CC&R's are ambiguous as to explicitly not allowing STR's.