In traditional wholesaling I do an assignment.

Hi everyone, I have the opportunity to buy a house that is worth approximately $120k for $75k. I have no cash. My inclination would be to borrow the money from a private lender and then refinance into a conventional, ...

Just like with a traditional 30 year loan you wouldn't divide it by 360 (months). 

@Bruce Weyer You would want to talk to an accountant for the exact items that can be deducted but you have hit on the main ones.

If not, guess that could cause the spiral down.Or maybe a capex item isn’t an issue, but if rents only cover your mortgage/tax/insurance, do you have enough at that point to cover your own living expenses?

The only way I can see to buy an asset without the usual DD items is if you know its a deal even under the worst case scenario or its part of a portfolio and you have to take the good with the bad. 

I am using a split transaction to itemize the expenses/proceeds to total the selling price, correct?

you'll have to figure out what's important to you (what types of properties, price point, how to finance (salary/traditional?)

@Samir Shahani, I agree with your reasoning, but generally places that rent for more do have nicer finishes and would require more expensive items (countertops, flooring, grade of carpet, etc).

The two common choices for doing so are the self-directed IRA and the Solo 401k.The Solo 401k requires self-employment activity, but will allow you to take participant loans while the IRA does not.A few other Solo 401k benefits:Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)With either structure, it's generally recommended that you do not commingle retirement and non-retirement assets.