We have done very well from finding unique niches that work for us. 

For cash buying (wholesaling), high % equity is super important - otherwise they cannot accept your discounted offer - and you will fail trying to negotiate directly with banks unless you know that world and have proof of funds, etc.Forget foreclosure as motivator - you'd be better off looking at % equity (minimum 40%) combined with other motivators such as:1) absentee owner ("tired landlord" & "2 house payment" profiles)2) probate/estate sale3) divorce4) code violations

He is one of the most unique wholesalers that you will ever meet, and I consider him a good friend.

But the zoning also permits multi-family, straight commercial (service businesses, straight retail, or a mixed use combination of all.As for how it came about... we were looking for residential flip opportunities in the area and happened on this property the day a FSBO sign went up. 

The deal was fairly unique as we ended up getting it substantially under market price mainly because we agreed to coordinate the sale of the elderly seller's furniture.

This property is a bad Buy and Hold AND a bad Flip.Bad Buy and Hold:Your taxes and HOA fee combined are HIGHER than the rent.  

To get to our 40k estimate I am thinking using a combination of a peer to peer lending website and the home depot project loan.

These are assumptions, but the holding costs (taxes, insurance, utilities, financing if applicable) over the next few months combined with the selling cost (commissions, transfer tax, seller assist if you're selling to FHA buyer in a lot of cases) you're looking at about 85% of your ARV left. $90k x .85 = $76,500 - less repairs $25k= $51,000 - less acquisition $40k= $11k net profit.Consider the remaining profit you'll receive once this profit is split between partners and after taxes.I'm working on a similar deal right now and thinking that I will rent it out since the profit margin is only around $10k. 

Combined value is $72,000 - no major updates or repairs needed / planned.

I currently going with a combination of savings and very short term private money loans from my parents.