Quote from @Jonathan Snider: I have been saving up for a while to purchase my first STR.

I live in NJ but am looking to purchase an investment property in NY State.   

I’m considering either buying a rental since it’s cheaper or purchasing a flip if the market is booming enough.

Hi NidaI am very spectacle that the purchase prices you mention are anywhere but war zones.Most worth considering will start at $100K with rehab necessary.Please bewareBest Mike

Purchase price: $115,000 Cash invested: $42,000 Sale price: $168,000 Unfortunately, we bought this property as a buy and hold property, and our research led us to believe that this neighborhood was up and coming not in a bad area of Jacksonville.

We offer 10% down on the purchase price and fund 100% of the rehab.

Do you already own any properties, or are you just getting started and looking to purchase your first one?

However, achieving success in this space requires more than purchasing property—it takes strategy.

@Mario Morales - As some others have said I think the strategy is sound, but the key would be to find a distressed property that you can drive up the value with renovations so that the new value is 25% higher than the purchase price so you pay back your HELOC.

There’s usually not more than one investor with interest in any parcel so there’s is absolutely no incentive for the investor to pay a “wholesaler’s fee” in this scenario.In the scenario where the land is ready for development, and the economic conditions make development a profitable activity, the land owner has already been approached by the developer or multiple parties with offers to purchase.