@Lawrence AudenaUnder the assumption that the preforeclosure is willing to sell, if the mortgage is more than the house is worth you can't wholesale it.

If those assumptions are correct, then the question you need to ask yourself is: how much are you willing to pay to exit at $500k in 2-3 years?

@Jason Ma - it looks like you're planning to purchase using cash (feels like a safe assumption, since you have zero for your loan).

It may be that I just run the normal BP rental property calculator and see the ROI on that and make my assumption from there, but wanted to see if there is anything that I’m unaware of that might help give me a more accurate evaluation.

. 😊 (We had to Killz the ceiling 4 times to stop the tobacco from bleeding through.)Single Family3 Beds 1 BathBuilt on a Slab2 Car GarageShort Sale - 2 Months Start to ClosingFinanced with a Hard Money Lender (Lima One Capital) PURCHASE COSTS: Purchase Price $ (46,500.00) Inspection(s) $ (400.00) Appraisal(s) $ (900.00) Survey(s) $ - Lender Fees/Costs $ (3,760.90) Closing Costs $ (4,204.22) Other $ - Total: $ (55,765.12) REHAB COSTS: Labor (from page 2) $ (27,400.00) Materials (from page 2) $ (17,729.00) Total: $ (45,129.00) Unit Breakdown Unit 1 $ 1,400 Assuming $125,000 ARV during Refinance ReFinance Assumptions LTV 75% Loan Amt $93,750 Equity Left $31,250 Interest Rate 5% Mortgage (yrs) 30 Mortgage Payment $ 489.04 Cash Out Refi Return $ (4,983) ReFinancing Key Values Cost/Unit $ 93,750 Cash On Cash Return 118.31% Monthly Cash Flow $ 491 Annual Cash Flow $ 5,896 BeforeAfterThanks for reading, let me know what you

(Some agents my call this a "net Listing", it is not since you are representing yourself).Always get right of possession or right to show if it is occupiedRight of signage - you want to be able to put a sign on the buildingRight to list the buildingAlways build in a seller financing clauseItems you can give up - these are items you can give up when negotiating -- Settlement cost to be split, contingent on building inspection (what do you care - if you are really in for a discount deal, subject to assumption or subject to mortgage.Some clauses leaves the door open to "Second Stage Negotiation" do it right and you can renegotiate the price to your favor.

Your assumptions on loan interest rates are also very optimistic given recent rate hikes. 

My assumption is only based on that this is what I was told many moons ago when my then fiancé and I entered into a lease a month before our wedding.

Same are based on some sort of assumptions, I presume.My question is - what is the origin of the assumptions you make.

(Total $20,800 - $8,000= $12,800) The assumption is- they stay in the house for the 4 years and at the end they have the $4,000 in cash to pay off the home.