I've got a contract on 2 houses to wholesale and have been advertising heavily for a buyer for a couple weeks (classified ads, bandit signs, craigslist, other online sites), but haven't gotten any calls. I've got comps, photos, and video on a webpage. So now I'm wondering if the reason I'm not getting any interest is that they are bad deals.
House #1 - 2022 square feet, 4/1, very upscale historic neighborhood in Knoxville, TN - List price was $99,900. I'm buying it for $70,700 and selling it for $80,500 (adding in closing costs, hard money cost to purchase, and $5000 profit for myself). I've also included in the ads that I could assign the contract for less. The ARV is $135,000. Repair costs are estimated at $10,000, so profit would be $44,500. Seems to me that's enough "wiggle room" to make a good profit even if things go wrong, which I know they will. So where am I going wrong?
House #2 - 1106 square feet, 3/1 (with room to add a second half bath), quiet street, working class neighborhood - List price was $20,000, HUD owned. I'm buying it for $20,500 and selling it for $32,600 retail or $29,900 wholesale (added in closing costs, hard money cost to purchase, and $5000 profit for myself). The ARV is $75,000. Repair costs are estimated at $28,360, so profit would be $16,740. I've found several retail buyers but am waiting to see which one could get a mortgage. I'm steering them to a local broker who specializes in the FHA Rehab loan. I think I know the problem with this one -- I didn't get it significantly below list price, even though I got it at 78% below ARV (29900+28360)/75000. Am I right?
Thinking about buying House #2 myself, but really don't want to walk away from House #1. My reputation is important to me and it is just plain wrong.
So advice? How did I screw up?

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