Purchasing rental from wholesaler

[Robert Obniski]

Im tip toeing the line of purchasing my first buy and hold as an investor. I have only flipped properties at this point and they have all been from the MLS.

So I have a few questions regarding purchasing from a wholesaler and a rental sfr. 

1. Purchasing from a wholesaler - Is this price negotiable? (I know everything is 'negotiable'  but you know what i mean)

2. Terms are: Buyer pays all closing costs, 100% prorated taxes, must be cash. -As far as the closing costs does that mean on both my side and their side? What does it more or less equal out to?

3. Asking price is $49k with the terms stated above. Rehab is roughly $15k

So lets say all in is $70k with my own cash. I have it rented at $1k per month. 

Now the next step, from what I gathered, is to get my cash back. 

So I take out a loan against the property correct? What kind? How much of the value?

I guess im really asking 2 questions. Precautions before buying and what do I do after im all in and rented to get my money back. 

[Adam Bartomeo]

2. Taxes are normally paid in arrears. Meaning they are paid after they year is over. If they are being prorated, then yes, they will pay you for all of the months that they owned the property for the year and then you will pay the full bill when it comes due. Your original explanation alludes to you paying all of the taxes. 

3. It is the same exact process. Banks will often want to see 25% or more left in the property.

4. I always take EVERYTHING I can get, IF and ONLY IF, I can still pay all of the bills, miscellaneous expenses, vacancy, and the property will still cash flow by $300 per month. I want the money to by the next property and not be tied up in the property. But, that is what I do. You need to figure out what you do.