The trailers and tenants have also been a bit of an issue - the seller has now put 8k in escrow that says they are responsible for the removal of the trailers by the end of the 90 days (60 days of which we will be the owners as we close early next month) or we get the money.

Short answer: it’s unlikely you’ll have any issues since it gets automatic consent form the IRS.

I ask because I have some major issues with your company and the way it sells this business (REI) to newbies.

The reality is that if you target $10-20K profit, it is fully expected that the occasional deal will come in at $5K due to unforeseen issues.

However, you can get around this issue if you know the neighborhood you are buying in. 

Most of my lenders have higher costs from 50-60K, over 60K and zero issues. sub 50K loans is going to be very difficult to produce

@Dennis Rootes I also want to add that in Houston you’ll have flooding issues potentially but also in other parts of Texas you get a lot of hail and increased flood damage that makes your insurance more expensive.Just FYI 

That probably means price is an issue. 

Harder to sell, hoas and all sorts of issues.

You may have some issue with the appraisal if you are financing for the mortgage since it will appraise as a SFH 3/2 not a multi family.