If you buy a property for $7K does the cost of repairs it needs make it worth doing, meaning: can a neighborhood where properties go for $7K also have comps to support the value for a finished house that's priced at an amount that makes you any profit?

If you think you'll make a good profit from the deal, maybe ask other wholesalers in your market to provide the 2k and then you guys split the profit.

My main questions are around how to structure entities, taxes, profit handling, and overall process.Thanks!

His fear is that anyone I would be dealing with would be such lowly people that they would do too much damage for me to make a profit, or won't pay rent, or that I won't be able to actually keep it rented and will end up in foreclosure.

To capture the real benefit you’d also have to look at the marginal tax rate.

Worked out well and I was able to give a slight discount to renter/purchaser without it hurting profit margin

Trust and can I breakeven/profit from the setup?

So here are the numbers:Purchase: $65,000Rehab: $48,000Holding, closing costs & misc: $19,000Sale: $172,000Net Profit: $40,000ROI: 35%Some pictures of the finished product:

Also remember if you sell the new home after closing you have agent fees and closing costs which will eat away at your profits.

Connected Investors can be a source for funding but learn other profit methods.