What I meant in the original message, the part that you quoted, is that if I find a deal thats extremely great I would consider reselling it to make a profit but my primary goal is to rent it.

Its just with doing it hundreds of times, you can begin to estimate the holding costs, resell costs, and desired profit as a general percentage (30% of resell value or ARV).I used to do exactly what you outlined, Bill, and when I first came across the 70% of ARV minus repairs formula I figured out that the vast majority of the time it matched with my more intensive calculations.

Just the 3% on the resell?

From the seller's perspective; you get a higher purchase price, closing is very straightforward and there's no financing contingency, don't have to pay an agent or broker out of proceeds, it's truly passive income, you could potentially recollect and resell the asset, capital gains taxes are deferred as you receive payments, and if you need the liquidity at any point you can sell the note.However, seller finance isn't the best option in these scenarios:- Seller wants to roll proceeds into a new property, including if there are plans for a 1031 exchange- Seller has a strong desire to immediately receive the cash for the property, or has a desire to 'wipe their hands clean' of the place and never have to think about it again- There is an existing loan in place.

If one needed the cash, just resell the Note.  

The carpet was shot enough that I replaced it, repainted the interior and was getting ready to re-sell when I noticed what looked like I might have had a roof leak.

Flipping PropertiesIf the primary objective of your real estate business, or one of your real estate businesses, is to buy, potentially fix up an existing property and resell it within one year, the Internal Revenue Service can consider that to be an active trade or business.

It all depends on what you think you can make on your home if you resell it and be a "house hacker" if that is an option.

The big plus for FHA loans is they are easy for the lender to resell to the secondary market.For investments, using a portfolio lender (ie a local commercial lender or even a credit union), will keep your loan (aka servicing) with the lender and that is much easier to do.Multiple properties, specifically 5+ units, will avoid the DTI  problem, but you will have to put up 25-30%.

You'll also have to account for any marketing costs, holding costs, permits, closing costs, taxes, insurance, etc, etc...You might consider diversifying your investment by let's say just for example's sake:- Buy a $20k house with $10k repairs, and re-sell for $45k- Buy a turn-key rental for $40k for cash-flow and appreciation- Buy a private mortgage note for a property valued at $50k at a discount for $25 and receive cash flow payments and appreciation- Buy a $100k house on a lease option/purchase for a 3 yr term with $2k down, then sell it on a lease option for a 2 yr term, receiving $5k down and future sales price of $115kYour Options Are Endless