I told him $2,500 is a fine RETAIL price but I have to buy at wholesale, so I can retail it and make money, otherwise it doesn't make sense to do all this work just to break even.

I still have to price out a central air unit, carpet, and double check his material take off/cost.I am thinking about dealing with this one a few different ways (if anyone reading has an opinion on any of this I'd love to hear it)a) finance the deal myself (cost will probably be around 4-5k)b) get a personal loan from the bank and use THEIR money to do this deal.

Posting again in the correct forum:Hi,I come from a finance background and currently work as a software developer.

To obtain a more specific education, the CCIM will be the better way than generalist degree, take it after obtaining a finance degree and it will be much easier. 

(plumber, electrician, GC) And again, have a friend and or inspector send a final report after a walk-through if you are unable to personally inspect the property.- Start small, keeping in mind you will not get rich off one deal but.. many people have walked away broke from just one (both financially and or emotionally.)- Finally, you have to take the Cal Newport approach in building and identifying your career capital and always leveraging that to succeed.

I have an interesting History.I started a Real Estate Education Business where I taught my own Real Estate Course based upon a solid foundation of Financial Calculations such as PV, FV, DCR, Amortization Tables, ROR, ROI, Cashflows, IRR, etc.The Year I started the Course was around 2005 or 2006 and I tried recruiting students from an REIA that was called "NYCCashflow".What I offered was to teach all the Math that was necessary to become a sophisticated Real Estate Investor.There were also 3 Levels to the Class and each level needed to have a Final Exam to move up.I only charged $20 per week, but you had to spend 3 hours for that single class per week for approximately 6 months because most Students, including most Investors, are really Financially Math Illiterate. 

What alarms me is so many folks dont understand what contingencies are and how they affect a buyers/sellers ability to close - a finance contingency is a courtesy from the seller- which also means the buyer can back out if they cant get funding.

A final note on REITs, they qualify for Qualified Business Income deductions when held in a taxable account, which makes them a little more tax-efficient to be held outside of IRAs. 

Live, learn, grow and get better like a fine wine!

After discussion which may take a few sit downs to hash out, make a final determination but keep it business ( also a good lesson ) If you mirror your partner morally you’ll both come out in a good arrangement, and, as tricky as this is, be flexible and crystal clear honest.