@Tim JohnsonThere are essentially two ways (and a few variations) to purchase this deal, depending on how the owners are selling it:As a going concern:  In this instance you are buying the business, so it is the business you evaluate: assets, liabilities, revenues (historical: 3 - 5 years), operating costs (historical: 3-5 years), future financial projections, goodwill, etc.    

You'll be subsidizing mortgage with renters and splitting the rest of costs with him.

Cost is mostly legal, with about $10K - $15K being average.

Pros: - Low upfront cost- Very high profitability (we average 23k per deal of profit) and the ROI is AMAZING- Sustainability - so many land owners out there don't want their landCons- Can take 4-6 months or so to see results- Marketing is expensive, we send mail to acquire properties.

Comparing quotes will help you identify the most cost-effective option.2.

AI can connect you with our cost segregation specialist if you have any other specific questionsGino

From there you'll need to determine Debt Service (if it's a financed deal) and Capital Expenses, to then calculate Cash Flow.The Cash-on-Cash Return (CoCR) will just be Cash Flow divided by the All-In Investment (Purchase Price + Renovations + Closing Costs + Wholesale Fee).If you're wholesaling these deals, I recommend you aim to offer your buyers a Cash Flow of no less than $250/mo and a CoCR of 10% or higher.

The repair costs will take multiple years to recoup and with the age of the property I'm concerned if it's even worth holding long term or get out while I can before I fall into a money pit and get stuck.  

Emphasize that your offer reflects the necessary repairs and the costs associated with fixing up the property.

I always hear that it is the least costly.