I’ve been thinking about partnering with a successful wholesaler and seeing if they will expand their operation to include the zip codes I am interested in.Example:  I would like to partner and give money to a successful Detroit or Texas wholesaler and see if they are willing to add my Georgia target market to their operations.Before moving forward, I wanted to get some feedback and advice from those who are wholesalers or who have partnered with wholesalers.Has anyone ever heard or have experience in a partnership like this? 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Stay positive and expect problems.

Roughly $600 per month in positive cash flow.What made you interested in investing in this type of deal?

I'm totally good with some sweat equity but I'm not in a position to do Roof, siding, structural repairs and such.

Luckily, my wife and would be in a position to buy their house from them at fair market value, if that is the best option? 

Being in Arlington, you’re in a prime area for finding multi-family units with strong rental demand, so you’re in a great position to make this work.We’re excited to have you here and look forward to hearing more about your journey!

However, I had to subordinate the sellers note to 2nd position (hint: set up that language in advance to streamline the process, if that's the direction you're going to go).Since the ARV was high enough, and the potential income would support the mortgage and expenses, it all worked out. 

Would love to get some BP community feedback on what you all think of this, let me know!

Because you are not changing the tax return that reports the activity of the property.But... the IRS holds the position that Husband/wife LLCs can only be disregarded in community property states.