Great submarket in Phoenix.Numbers lined up.We toured the property in person, walked every building. 

When I walked it, the empty property looked well taken care of, but when a contractor arrived to walk the property this morning, it was surrounded by police officers. 

I would get a GC to walk it, there is really no rule of thumb to get these numbers.

The deal took about two months (assumables always do), but the seller walked away with cash in hand—avoiding a potential foreclosure - on a property that wouldn't have appraised.

Not classy on the tenants part and they've otherwise been pretty good tenants.Trying to protect my downside in case they don't actually move out at the end of October (although I did get a landlord reference email weeks ago so I believe it's legit they're moving out), also not wanting an upset tenant to trash the unit on their way out being spiteful... trying to walk the line here.

He personally walked me through the property and mentioned that about 20 years ago, he dug out the basement—originally a dirt floor—by about 10 inches to reach a ceiling height of 7.5 feet.

If you don't get answers or get the wrong ones, walk away . . . you will always loose unless the price reflects room to build in a large "what if" buffer. 

Otherwise I would walk as significant structural issues like wall displacement, footer settlement, sinkholes etc aren't going to be fixed cosmetically by Joe's Handy Service.

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.

They’d been avoiding calls, ignoring letters, and living with this quiet dread that it was all too late.Here’s what struck me: once we walked through what foreclosure actually meant — the process, the timeline, and the possible solutions — their whole mindset changed.