Hi,In spite of Federal Fund rates having remained steady in the latter part of 2006, the economy seems to hover between a soft landing and a recession, without taking a definite course.

The rental market has actually become very soft in Lubbock.

In so doing, they can cover 100% of the total project costs including, in most cases, monies the developer has already expensed for soft costs, pre-development, etc.

Regardless, since you will be buying once, then selling once, your round trip commission cost will be about 6%, assuming use of agents on both sides.On top of that, there are other hard costs - title insurance and inspections, in particular.On top of that, there are *soft* costs - things that both you (the first buyer), and the second buyer (the one you sell to) must do - due diligence to make sure you're not being hosed by a bad house or a bad deal.

i'll save the wholesaling for when i have some extra money put away, just in case i screw it up (probably bass ackwards from the way most people do it)...

But since the market is soft now - you can't really depend on the comps from 6 months ago.

But believe me, those that are successful in this type of business are those who are honest, transparent, soft spoken, great listeners and one who cares more about the players than the game.

The way I learned it is that the 30% you subtract right off the bat does indeed take closing and holding costs into consideration.I was taught that 10% = soft costs and 20% = profit.

End-game possibilities to (a) put on the market to sell after 4 months refurb – could be worth $575K ARV and if sold quickly yield me a 30%+ cash on cash return, or (b) if soft buyer’s market then put out to rent, with projected 9% cap rate.My main questions:If I put in 90% of equity, what % of profits would be competitive?

Is it just plywood that is rotted out to where the floor is soft or will fall through if you step on it?