If the median price home is 150K and rent is 900, and another area has a median price of 100K and rent is 900, I buy the latter example. all things being equal.

With all of that being said, and all other things being equal this property could have a value of pushing $1.3 Million.

If sees how much interest income he'll be earning on paper he'll be more likely to accept your offer.All else being equal, I'd always consider a three bedroom over a two.

(Dont know if thats a good thing or not) Yes has first month rent and equal security.

However, my friend who is selling it to me has offered the following option for the 555,000 mortgage payment: first year $2000 per month, second year $3000 per month, and third year and beyond, 7.75% APR which equals out to about $4000 per month.

If my taxes are 1000 a year more, $86 per month, it is equal to about 14K in property value for the same payment.

The buying and selling of 4 properties a year is actually bases on the California law that states that if you do 8 or more deals in a year you are considered "in the business" and are required to be liscensed.The buying of 4 properties then the selling of 4 properties would equal the 8 transactions a year threashold.It is also interesting that (in CA) any deal that involves an RE agent does not count toward the 8 transaction limit.

Karen - I find it amusing that you really, truly think I have a desire for all people to be economically equal.

For a wholesaler, you just have to add in your wholesale fee on top of the repair estimate.Lets look how that works using real numbers and 60% instead of 70% because the market is still shaky.For discuss sake ;lets say that the ARV was $100K... 60% X $100K equals $60K.If your repair costs are $15K you would subtract them from the $60K to arrive at an offer price of $45K.Now you subtract your wholesale from the $45K to arrive at your offer price.I hope this was helpful?

I don't know, it is called equality.