The houses should have also had updates as close to what would be expected of her wholesale house.Once you have these "comparable" houses, she needs to then adjust her property (with the after repair assumptions) up or down depending on the comparables stats (adjusting for SF, acres, beds/baths, etc).

Your assumption that it is more protection for the bank makes me question whether you made other correct assumptions because its really a poor assumption that has no rationale.

Unfortunately the only way to deal with that is to research everything with the assumption the bid may drop

View report*This link comes directly from our calculators, based on information input by the member who posted.Looking for some help with this deal, have I put in reasonable assumptions? 

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

If I had know what I know now at your age, I'd be retired already.Your advantage is your youth:You have the time/energy to do a "second job" in real estate.You have no wife/kids (assumption there) to support, so you can live like a hermit for a few years, house hack, and rack up some serious starter capital. - plus you can move every year and get low FHA owner-occupied loansYou have a good paying job as an engineer, which will help you build your credit score and also make loans easier, negating the need for "alternative" financing to get started.you have time. 

Get your logic on the stock market and the chance for it to go down and earning 1% above prime is not bad....but is it a good assumption that Bay Area real estate only goes up?  

It seems like you’re making a few assumptions here and only time will tell how this plays.Ask them what they would sell the property for and if it doesn’t make sense to you, tell them to keep you in the loop as you would like to own it at a price that’s more reasonable. 

They may be making assumptions and are looking to get the services from the other. 

I don’t see the sense of one of the partners almost completely expending his personal HELOC while all 3 of the partners are on the hook to make his payments of principal and interest while operating on the assumption that the house could appraise much higher in a short period of time by doing what may amount to putting lipstick on a pig.