It has a lot of red flags but then my ai analyzer looks at 100 items. 

Leverage a low down payment and slowly fix up the building (ideally cosmetic items) over time.

This is a group of people with no morals who is more concerned with putting money in their own pockets instead of being upfront, honest, truthful with people in the beginning.What we see most lenders do is you have a draw schedule with completion items and once the work is complete it is funded - its rare if ever that a borrower gets a deposit before hand or before work is done. 

Hi @Jenni LeeI would speak with your home inspector and ask him what items he felt were the most pressing.

When our clients bring us wholesale deals, here’s how we help protect their interests:Deal Analysis – We evaluate the numbers to ensure the property aligns with the client’s investment goals.Secure EMD Handling – We require the earnest money deposit (EMD) be held by an attorney or title company—never the wholesaler.Renovation Support – If the property needs work and our client lacks a general contractor, we refer one from our vetted network.Wholesaler Due Diligence – We verify how the wholesaler controls the property, especially if we haven’t worked with them before.Transparent Fee Structure – Once the contract is finalized, we include a line item for our fee so everything is clear and documented.This approach ensures our clients are protected and positioned for success, even in non-traditional transactions.

That’s around a 2% return on equity, which is low — especially when you factor in management fees, minimal rent growth potential, and limited reserves to cover big-ticket items.

When inspection was done, we used several items on there to negotiate it down another $10k to $345k.

Check for big-ticket items like roof, HVAC, and plumbing.

Due to item 1, adding an ADU can require years to start achieving any return (once the accumulated cash flow recovers the initial negative position).4) Adding an ADU is a slow process.

Look up with an internet search on the lifespan of the item to find what percent is 'used up' and multiply that by the cost of a new one.