So if this investor didn't pay a wholesale fee, maybe his repair costs were 3K more than I have suggested, just move that number to cost of repairs, lender fees, interests or another expense I have not included below.Costs to Buy:$3,000      Wholesale fee$440        Title and recording fees$300        Inspection$63K        Cost of repairs (remodel, Sewer lines, roofs and mechanical)$1275     Holding costs for 3 months (Property Taxes, insurance, utilities, not counting cost                 of cash if they had a loan)$6530      Selling cost (Broker fees, Title escrow fees, Staging fees)Every investor should have a deal analyzer spread sheet that they use to evaluate each deal, just plug in your purchase price, ARV and your costs. 

After paying off your original note of $100k, you have $60k tax free in your pocket and a new 30 year note to show for it (with higher payments than you were previously paying)With a HELOC, all you are doing is taking a piece of the equity spread you have in your home.

I know that there are companies that are a little spread out geographically and handle the purchase, rehab, and placement of a tenant, but I would be less confident that they would maintain a presence in that particular location.

Personally now that I saw a ton of investors having and actively using a personal financial statement with their lenders, I will start one as well to log in all in a cool excel spread sheet, that will so historically from day one actual numbers that each property perfomed in one place.

I expect the project to be ~1.7M and am raising ~600k to cover planning and initial costs and financing the remaining 950k (750k/1.7M = 44%).My neighbor is considering selling me their (larger) property for 600k that is wholly owned but has very high cap gains pending.We are both concerned with minimizing fees and tax penalties.They are open to an idea I proposed where they would transfer the property to me in exchange for a comparable position in a LLP limited partnership stake in my project which would enable me to take out a HLOC sufficient (or nearly) to fund the project and buy them out, plus interest, in a chunk once complete/over several years.Another thought was to owner finance with payments to them spread across say 5 years from the added value to the developed project but it seems that muddies the ability to establish an equity line that they aren't affiliated with.Ideas?  

I was considering doing a lease with him with the right to sublet, making some cashflow on the spread of what amount I negotiate with the seller and what amount I charge the tenant.

Normally, the wholesaler will not even take ownership of the property, but will instead collect the spread between the original price and the assignment price.

states need to do what California did... 5 year mandatory prison sentence for copper theft.And for sure to buy 1 or 2 C D properties is risky ... as you state you need mass to spread your loss's because its not if its when in these Urban core areas.. just a fact of life

There is a "spread" that the lender will make over the 30 year treasury yield that corresponds to the amount of risk in the project for them.If I am you, I am asking what the "caps" are on the adjustment every year--that is--how high can the lender adjust the rate?

I'd suggest before you try it, to get competent legal advice, and that does not come in forum posts, blogs, podcasts, or any other media other than from the mouth of your legal counsel or in writing as an opinion.