Do I buy this one or wholesale it? $40k price, ARV: $100k owner financing

[Belinda Lopez]

Just left an appointment with a nice lady who is selling her home for $40k. She told me she could owner finance with $10k down and I can pretty much name my own terms. ARV on the house is around $100k, needs about $5k in repairs (roof, interior paint & flooring). I can probably wholesale it at $50k for someone looking for good rental or I could take the owner financing, do minimal repairs and owner finance it out with a wrap for a nice cash flow. Would like some feedback on whether to just Wholesale or take the plunge on my first rental property or owner finance it out?

[Joe P.]

I would buy it with the financing. If it only needs 5k of work to sell at 100k you are leaving a lot of money on the table wholesaling it for 50k.

If it was me I would buy it and sell it as-is with financing. Sell it for 85 to 95k and get your 10k back with the down payment. Don't put a due on sale clause on the underlying loan and wrap it. You won't have any money in the deal, you didn't have to fix up and you have a chunk of equity coming at you when they refi.