It is a huge mistake to build a $450k home and then have all the other builders come along side and build $350k homes.

@Antonio Bodley Yes, our company gives the owner $10 option consideration, just as you typically give $10 consideration on a deed when you buy a house.However, I didn't realize what you were trying to do...Duplexes aren't the best property to find a T/B for, so if you move forward on this I would market the other side as either a LO or a straight rental.I also wouldn't look to move forward on this if you can't cover at least 2-3 months of the other side being empty, and you better know how to screen an applicant very well.I have the feeling from reading your post that one or two hiccups in this arrangement could really hurt you, so just make sure you have the reserves to cover yourself.Also, in this situation, the owner will most likely want at least 1-3 months or so as option consideration.

Sounds like you are dealing directly with the seller, so you can probably still do it that way.I recommend you partner with a local experienced investor and offer to split the deal or get a finder's fee if you can work along side them to learn.

It didn't matter to me though.I wouldn't buy a property from my mother without an ALTA Title policy so fortunately, and to the relief of my agent, I was covered and my sale went through on time with only this little hiccup.

Combining acquisition and rehab financing at the LTV's we lend to, gets us both where we need to be, and we don't have to speculate on stability in the markets, job costs, completion date hiccups, etc. 

I rather not guess just looking for a way to do my first deal with little experience in wholesaling and as few hiccups as possible.

I'd say it's better to partner and you swing a hammer along side matching funds with someone who can carry a deal with you rather than getting involved as a strict lender and trying to meet the issues mentioned above. :)

I've taught violin as a career alongside real estate, and let me tell you - teaching is a sixth sense.

I know, I know, that is not a part of the numbers technically but it is worth noting.I am sure there will be hiccups along the way and I expect them but I am proud that I jumped in and didnt get stuck in "analysis paralysis."

The other stuff you'll be learning over time since you'll be living alongside the tenants.