That would put the PITI around $2k/mo, and I'm totally fine with paying out of pocket per month on this place, because im very okay with the location and the markets fundamentals (Dallas, TX). and once i move out, it will cash flow at roughly 1.5 DSCR. plenty of room for stuff to go wrong! 

@Cameron Chambers there are lots of things you can do to go beyond newbie and before buying your first propertyFill in your BP profile... it's currently emptyBecome an expert in analyzing dealsBecome an expert in market analysis Learn all you can about a specific market or type of investingWhile partners certainly value experience, knowledge and sound fundamentals go along way.

Grand Rapids has super strong fundamentals so won't be hit as hard by a market correction and is still very affordable.

Well let's see ... buying a property when you don't yet understand the dynamics of real estate investing, in a market you are not familiar with, paying retail price, with no value add, and then turning it over to a complete stranger giving them complete control and trust to make or break your investment for you and keep your financial interests at heart above theirs, in a market where you'd need to hop on a plane to visit if heaven forbid anything went wrong that your PM couldn't handle and in all likelyhood caused (but never mind, that could never happen) ... yep, sounds  like a solid plan to me.That's not even to get into the economic fundamentals of supply and demand and risk adjusted returns.

It will help you learn some of the basic fundamentals to a RE transaction (pricing, market conditions, talking numbers and gaining a familiarity with standard forms) and those skills will cary over well to wholesaling.    

It's all just part of the theory of proper investing and an opinion.For example I can pay a higher than market price based on a cap rate for a property that is under performing as long as I know I can increase my NOI and come out better than buying a property with a market CAP at a market price.The reason you want to know the CAP rate and other metrics is you have to start with the fundamentals of analyzing investment properties and those metrics are where you start.A lot of people say you can't look at cap, you can't you at grm, you can't you can't you can't.Well those are general statements and are usually further down the line, but you need to start somewhere.First you need to figure out what you are trying to accomplish when buying an income property.

I will tell you, though, the fundamentals are the most important.  

The fundamental problem here is that you're dependent on the HML coming through with the loan in order to close on the deal.

Similar to farming subsidies or business bailouts, whenever government attempts to fix prices or intervenes on fundamentals of economics, more harm is done then good.Our business for one, will not be investing into C class assets anytime soon.

@Carla M RichardsonYou have a lot of wrong information about the fundamentals of wholesaling (and real estate).