The biggest issues I have with wholesaling isn't actually wholesaling.

The biggest thing to remember is you aren't going to get all of that $70K in equity in your hands no matter which way you go.

Free first month is one of the biggest indicators of problems in that geographic market.In summary the turnkey business model hinges on issues that are not talked about by the vendors or even the buyers: CAPEX, vacancy, fixup to re-rent.

The biggest challenge I see with wholesaling is that people in the industry are pretty wise to it.

I think it would be cool if you could write down your biggest problems you had with this house and how you fixed them, a blog of what happened.

I can't say for sure, but if your offer is accepted, you may have already made the biggest (and worst) newbie mistake of all - offering too much.In my area, if a house is listed in the MLS and needs "minimal work", it usually sells to an owner-occupant, and they usually pay too much compared to what in investor should pay.Also, realize that the majority of offers made by experienced investors are NOT accepted.If you really made an offer low enough to get you 30,000 in instant equity, your offer probably won't be accepted.

Depreciation tends to wipe out any Philadelphia local Taxes due.The 10 year no property tax on your building abatement and the fact depreciation is allowed in Philly - no matter what your earned income - are your biggest tax benefits.Rey Grabato / Owner manager

Today we got the first confirmation that other asset managers may have finally given up on the rental conversion strategy, following the observed collapse in multi-family housing starts which crashed from 376K to 234K in April (the lowest since last summer), a drop of 142K and the worst monthly drop since 2006 when the housing market had once again peaked and was about to undergo a very serious correction.http://www.zerohedge.com/news/2013-05-16/multifamily-starts-suffer-biggest-monthly-plunge-2006-reo-rent-recovery-deadIn addition to the money-laundering aspect (confirmed previously) and the REO-To-Rent scramble by PE firms and hedge funds (which is now over as PE become active sellers of apartment rental properties), we highlighted the third implicit subsidy to the housing non-recovery:Foreclosure stuffing.

This is the biggest issue with the home and what has likely held back most buyers.

I know those areas take the biggest hit during the downturn and are last to recover.