And some coach type is using such contracts in their "instructional" program.

Hello, @Nicholas Moffett ,I just bought;The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss: Written by Ken McElroyLove it but that is just an opinion.good luck

@Nancy Curran I instruct my tenants when they move in that "dirt and damage does not equate to wear and tear".  

This came about during the last RE boom where people who didn't know what they were doing, rehabbed homes and then the new buyer found out that the electrics and/or plumbing hidden in walls was defective but the LLC that sold it to them had been dissolved and so they had no recourse.I do like the idea of having extensions written into the loan to start with, so if the rehab takes longer or just doesn't sell quickly, it's already covered.I do have a couple advantages, firstly my friend owns a third of some of my rentals and so the loan will be written with a clause that I can use part of his share of the rents to cover this loan if the loan goes over the fixed period of the term.  

Even on not-so-awesome deals there plenty of activity, so I cannot imagine that in a market like this there would be enough "hidden gems" to make a living of off.

The instructions for schedule E should help clarify what's 'repair' and what's an 'upgrade'.

They also are stating they will not pay last months rent and instructed me to use their security deposit, which is boldy denied in the lease they signed.

It used to be completely hidden underneath an extensive poison ivy carpet and obviously hasn't been touched in years.  

We agreed to an addendum later.So a few months gone by and in the last few weeks, the new dishwasher and washer are in, no glitches, he even hired my recommended handyman to do the install, who at the same time with my instructions relocated the junction box, as well as changed out the existing hot water valve to a dual valve instead of the messy adapter tees and connectors. 

This is the chapter you want, it has step by step instructions on how to do a development deal in QB, and a flip works exactly the same.