You have no idea what the wholesaler told the seller.I suspect the out-of-pocket $40,000 is for the wholesaler's fee.

Obviously you want to pay attention to your interest rates, cost of appraisals, and fees for refinancing.

I was part of that game years ago.We focus on PPU, profit per unit.

Numbers show that if I bought 3 houses and after NOI and Debt service I have around $430 per house so around $1290 a month. 

@Mikhail Egorov, for your first few properties a Google sheet or excel will work just fine to keep up with your income and expenses per property.

The property can be bought for about 175K and it already has tenants and brings in 2600 per month.

If it's well written and well documented, this will take <2 minutes for every loan you do and solve your problem moving forward. 2.

We visit 5 or more times per year, so it could be financed as a second home.

Additionally, there are often fees associated with belonging to an HOA, which can be an added financial burden.Ultimately, it comes down to your goals and deciding which choice will most effectively support them.

For instance, is it common to state to pay a flat fee of only up to $x amount in the event the seller does not cover the cost?