Sale Price: $525kPurchase Price: $325kMortgage Left: $268000Estimated Gains: 224kMy portion of the gains (after 50/50 split with wife): $112,000Questions-Do I have to purchase a home of $525k with my $112k or simply a home of $112k or higher? 

A portion of the monies the tenant gives me pays that down.

Milwaukee is a great cashflow market with opportunities in that size range.$50k with 75-80% leverage can get you a solid B-class duplex.Just want to make sure to understand the location within Milwaukee you are investing in, that it is truly B-location

There's oddly a lot of This is very true, with this large amount of capital, need to think big like NFL player level.I read financial proforma of class B hotel in Maui, it's pretty darn good, in fact it's perhaps the top ten best performing hotel in US in term of vacancy and RevPAR.STR and stuff like that is more for small investor like us with half to 1 mil buying power, but when it is above 5% you really need to talk to some serious developer/realtor in the island and understand the business.If I have that size of capital I would import contractor from California to finish my project in Kukio LOL Currently in kona there're only few new construction that can still being built, I guess it is selling for 1.5mil and above.

Building a portfolio of this size takes significant time and infrastructure.Wholesaling is one way to get started with little money, to gain experience and capital for rental investments.

If this property were to make $225k without the additions based on its size and location, would it be worth it given the capital cost?

He wants to purchase a single family in LA county that meets criteria in regards to zoning and size in order to to build 4 homes/units.

You still have to run comps on everything, determine construction costs & estimate ARV, carry & commission costs, etc to make sure that deal in that market makes sense.To do that last portion better, I use Sales Comps and drilled-down market stats. 

A property profile has at least the following factors.Property type: Single-family, multi-family, condo, townhouse, etc.Configuration: One bedroom, three bedroom, one story, two-story, lot size, age range, garage size, etc.Location: Where the tenant segment is renting today.Rent range: How much is this segment willing and able to pay.Notice that I did not select any aspect of the property.

What made my investor interested in this deal was firstly the size, being just under 1500 sqft and being a complete shell minus some framing allowed him to be able to convert this once 3 bed into a nice 4 bed home.