Which do you choose?

[Aaron Mazzrillo]

I got a property under contract today. ARV is $190K. Seller owes $187K. The loan is 5.1%, 30 year fixed, PITI of $1,249.51. Long term tenant paying $1,675 and all utilities. I purchased the property subject to the existing loan with me paying all closing costs and a gift certificate for 2 dinners to The Summit House restaurant in Fullerton. (I like to negotiate 'stuff' for houses.)

I didn't see the house or meet the seller. I didn't write up a contract. I made the offer over the phone, then emailed escrow as I have done too many times to count. I then called my buyer and asked if he is interested. He offered me $5K wholesale fee.

The market this house is in has gone up 16.1% in the last 12 months.

I'm curious what other people on the forum would do? Take the $5K check and walk, or sit on the property with existing financing and wait for the bigger payday down the road and cash flow that will eventually appear with rent raises (and hope the due on sale doesn't get called!)?

Also, I'd like to know why you make the decision to wholesale or hold. I think people can learn a lot about strategy from your response.