Gross profit is interesting because it appears to just be the difference in his acquisition and sales price and fails to take into account the other obvious cost of running that business which includes, again according to him, the cost of over 26,000 letter print, mail, post, and the cost of the lists needed to create a mailer of that size. 

It's like only using weight to measure fitness.

Many of my decent wholesalers present failed flips for someone else to take over.  

No, that way leads to a failed investment. 

So in 5 years you have the money back and endless cash flow for the future.Your numbers fail to take in account several things.

Originally posted by @David Dachtera:Well, I've failed miserably.

If this is your first investment and your first property, the quickest way to fail is to create an uneven playing field.

Lastly, if he ends up failing to pay rent and is one month behind on rent, do I make him pay both months together as one payment or accept 2 different payments (one for each month)?

@Calvin Rappard I don't think it is feasible to do a new screening every year, and more importantly, I am not sure you have the tools to move someone out if they fail....

To add more weight to your case, dig deeper into local records.