As an example if you can do it a spread of 5% to 6% is very healthy and can probably be achieved in today’s rate environment but it implies a return of only 10% to 11% which is not bad but may not compensate for the inherent risk. 

That implies figuring out where you're likely to move to next year before committing.In terms of financials, I'd look to build a chunk of capital - $0 from #1 sale

Hence the value might be very impaired.Your comments about the utilities also implies that the units might not be legal.

Soltris,As you implied there is no perfect deal.

That leaves $30K a year cash flow.7% cap rate implies that this is a B+ or better building.

@David T.Thanks again for your valuable time.Are you implying that "pre-approval" doesn't apply to construction loans, only to personal loans? 

This would imply that the two (2) collective groups are Tenants in Common, although not directly stated.

The name of a sales agent sponsored by the broker may also be included in the advertisement, but in no case shall a broker or sales agent place an advertisement which in any way "implies that the sales agent is the person responsible for the operation of a real estate brokerage business."

many agents and sellers want to see how much loan $ you are approved for, and/or cash on hand to afford what you are offering to buy, in order to take you seriously enough to go through the trouble of a showing and the time negotiating offers and terms (lest they waste that time with any and everyone not qualified but just interested in wheeling and dealing to see how low you will go or whatever).the moment a potential 'buyer' drops the W word, there's this implied expectation for the agent/seller now to suddenly take the wholesaler on their sheer merit - as opposed to on any financial qualification to enter into a binding contract - that they dont have any interest in the property actually closing *unless* they find a buyer to make a profit off of before the contingency period runs out.  

@Abby Ruppert not implying wholesalers are doing anything on purpose, just that new investors will likely be the people to have a deal "pitched" to them.