As a new wholesaler, I'm still confused how I estimate rehab costs when determining the maximum allowable offer and the profit potential.

Internet Rental Scam: If you have a property listed on the internet, you must read this..If you currently have your home listed for sale and/or rent-to-own on ANY popular website (CraigsList, Rental Properties, Buy Owner, etc.) please be aware of a scam that has been making the rounds for most of this past year.This specific scam is originating out of cyber cafes located in the little known Republic of Liberia (you are probably more familiar with the Republic of Nigeria to the east, and the popular e:mail scams that promise huge payouts from the Nigerian lottery, or requests from a Nigerian diplomat who needs assistance in moving cash out of his country).

Ask them for their license.The internet does provide a wall a fraudulent person could hide behind so check each person out and make sure they are legitimate.

I would avoid speculation/betting on the draw starting out.An important key is to determine what sells the most in your market then align your purchase to whatever is getting the most turns.

So I basically have seen two basic formulas on these message boards to determine whether or not a property is a good buy.For rehabbing: (ARV * 70%) - repairs = Max Purchase PriceFor Renting: Rent * 50 = Max Purchase PriceI would like to buy a property to Rehab, but be able to fall back and rent it if I can't find a buyer quickly... while also having positive cash flow after mortgage and operating expenses.If I put an offer on a property for $25k and the ARV is $50k (if I put in all new flooring, paint, and redo the kitchen and both bathrooms) that leaves me $10k (According to the formula) for repairs which I could likely do if I'm doing it all myself.BUT...That would have me with $35k into the property, and I am only confident of being able to rent for $600...

Do your best to help them, but if somebody is determined to get scammed then you have to let them go.It's the innocent ones that get scammed that pang my heart so much.

Craigslist Backpage and do an internet search for Real Estate Investment clubs in your area.

Any help from your perspective can assist me with determining if rentals are another division I will be proceeding with.

This will determine how you rehab the property.5.

I had to rely on the internet and making phone calls to find a good lender, property manager, and realtor.