Quote from @Carrie Matuga: Rates are fluctuating some.

I have offered that and they do not want to carry anything for more that two years.

I live in NP and walk a lot and see many properties with wholesale potential.If you can be successful in the watch business my guess is those behaviors are not binary and will carry over.

In the end...they know that the LLC likely carries some form of liability insurance as a condition of their mortgage, thus will have some decent funds to pay out. 

My questions, that still haven't been answered, are the numbers for taxes, rent, and insurance to see what the CF might be (+/-) after the buyer gets the end loan to carry with.Also, I agree about the cost of rehab, and the lack of wiggle room if this was to be a flip. 

Any remaining losses are suspended and carried forward indefinitely until such time any new passive income can be used to offset the losses.

It was very very important to the seller as its next to their home.The property was then chopped, sold 1 time  but all deeds still carried the restriction, but by referring back to previous restrictions. 

(I sold a unit that I purchased for 485k about 10 years ago for 1.7m and did a 1031 exchange and used a little on the second unit)  Total carrying costs of approx. $8450 a month. 

Or does it carry over?

Everyone knows Starbucks, great brand, but their buildings are expensive to build and more often than not, the want the developer to carry the lions share the cost of development in exchange for higher rent.