If it's really a promising property and you could add some value you might be in good shape when it comes time to exercise the option.

“Co-Wholesaling”, typically an exercise in futility, but you may learn something.

(in the very remote possibility that I chose not to exercise my option) After a bit of sprucing up and putting solid renters in the place, I estimate that the value of the property should exceed 100,000.

The option contract does not give you the full bundle of rights in title to the real property until you exercise the option and become the formal owner in title.

If he fails to exercise the option you can then make any deal you like or not make one.The property is in Texas, TREC and Texas law prevails.Don't write this thing up yourself, have him pay the attorney and both of you go see one, he can pay but the seller should be the client, IMO.

It may be very hard to do but a really beneficial exercise may be to step back from the issue and evaluate it from a long term cash flow/value analysis standpoint.

The other liens like the IRS have the right to redeem, if they do not exercise that right to redeem they are wiped off too.

You need to go through this exercise even if you don't buy the house.

@Andrea Graybill, welcome to BP. there are a couple of absolutes that you need to understand about investing and using BP.In answer to your last question , yes it is possible to make a fortune in this business regardless of your financial circumstances.Going out and spending borrowed cash to listen to someone who thinks they're better than you is a kamikaze exercise when you have all the resources and information you'll ever need here on BP.

But I don't want to put granite in if that means over improving for the area (which I think it is).It will most likely be an exercise whereby I do a walk-through with the contractor and decide what is feasible and what is not based on my budget.