If you default and con not close or find a buyer then ultimately your going to breach the contract in which case the contract should already remedy the solution by the seller collecting earnest money that was given and excludes you from lawsuit.

I already market to the personal representatives of probate properties.I have narrowed it down by the following: property type, assessed value, sales price less than $100, exclude corporate/bank/LLC owned, sales date = previous 9 months.

Excluding closing costs (you can do the math on your own) P&I on a 30yr fixed loan of $300K at 4% is $1,452 and with rent being $5,462 you would cash flow about $4K each house (this of course isn't inclusive of taxes and insurance or repairs/main). 

Class D/war zone areas excluded please. 

No one is excluded.

Depreciation recapture is not excluded under Section 121 (the $250,000 tax free exclusion).

I entered these criteria:Geography: 6 zip codes% equity: 40-100%SFRAbsentee owned (out of state only included), Exclude trustee owned and exclude corporate ownedThe result was something like 80 properties.

If something turns up later (and its not excluded by the list of exclusions in the policy), the title company will take care of it.If you give someone a warranty deed without title insurance, and there is a problem, it will be YOUR PROBLEM to resolve it.

Often you have excluded real estate, lawyers, business man who have a half a dozen of relatives friend who are brokers.In places like Vegas, Florida resort town the success rate is slightly higher. 

My motivating interest in incorporating is to "de-passive" the RE business, so it shows up on the FAFSA & CSS college forms several years from now as the small business it is and excluded from liquid assets, and not a passive rental business they could force us to sell off.