The biggest pro to this deal is that the seller will owner finance for 5 years, a major perk for me as i only have so much capital and elders are hard to come by with deals in this price range.Any advise or insight would be appreciated.View report*This link comes directly from our calculators, based on information input by the member who posted.

I've seen a few different articles online about this with conflicting calculations but basically what is my basis for this 1031 exchange here:-Bought a house for 63,240 paid in cash.

Using the Flip calculator I found that a MAO of 140K would carry a flip profit of 20% at ARV of 230K. 

@Russell Brazil Hey correct me if I'm wrong but the listing agreement language isn't even relevant here.The relevant contract for payment of commissions is the employment or IC agreement between the broker and agent... and I'd be willing to bet anything that contract says you get paid only if the broker gets paid.

@Dan Simpson what a detailed post :)Before you move ahead on this deal, you need to calculate if the renovations you want to do still leave room for you to make money when you sell.

It could be a point or so different.Some A go between 4-5% some B is 5-6%But I bet that in LA  or SF done A could be in the 3%!!

View report*This link comes directly from our calculators, based on information input by the member who posted.

View report*This link comes directly from our calculators, based on information input by the member who posted.I am a new investor in the Dallas - Fort Worth market.

As I’m just starting the cash flow analysis, I use the HELOC and it’s rate calculate the debt service.

I understand the Cap Rate calculation, but I view that as more of a quick and dirty metric just to determine if the property is worth researching further.