Even if you could do it at the 60K, and flip it for 165K, you'd probably just break even after paying selling/closing costs.I'm not trying to be negative here man, it just doesn't sound like a good deal to me.

The masses seem to preach direct mail as the tried and true way, but like Alex mentioned, in this competitive market is direct mail a viable option for those who don't have a budget of $3,000+/month.Any feedback and statistics (response rates, deal conversion rates etc.) from people currently doing direct mail in SoCal would be greatly appreciated. 

Purchase Price: $230,000.00Year built: 2009Income expense ratio: 1.13%Gross Rent Multiplier: 7.37Debt Coverage Ratio: 1.48%Monthly income: $2600 (assuming both sides occupied and no section 8 tenant)Monthly Expenses: $2070Monthly Cash Flow: $530My main question is: Since Ill be occupying one side for a year, will it be worth it to have negative cash flow for a few months to a year while the section 8 tenant is occupying and I am occupying the other side?

Don't allow the negative comments regarding wholesaling discourage you.

Basics of the deal:Asking $750,000 with seller to owner finance with $25,000 depositGross income - $111,000Taxes - will be 3.7% of actual sales priceInsurance - $7,000Utilities are $7500 Assuming 5% vacancy rate and 10% repairs (property has had recent maintenance work and new roof and parking lot and nothing that appears imminent)Assuming 7% property management (which is average for our area) although we will self-manage at first although I know that we need to consider it in our analysisThe numbers don't work at their asking price.We'd like to offer $625,000 at 6.5% interest for 30 years, balloon after 20 yearsThe cash on cash return without the property management is 27% but with the property management, there is potential for negative cash flow in years with high vacancy and repairs.

Now they have a $125k debt on that house after refi and their payment is now $633 which is now negative cashflow.

I was also listening to the negative people behind me.

I am not saying this negatively just stating that one never knows when ,what , and how things have come back to me clear out of the blue from these type of relationships . last point : I am on the backside of 60 70 years old is closing faster than I want it to , Many in my generation GET IT !!!

You are now at negative cash flow by 18-20%.To bring this back to positive cash flow, you better be very very certain all the costs are that much lower then the above.Good luck.

Here are a few sources:http://www.crimemapping.com/http://www.goccp.maryland.gov/msac/crime-statistic...On the right hand bar of this page you have excel stats. http://www.goccp.maryland.gov/msac/crime-analysis-...