Lenders look at 29% of income to account for mortgage payment of subject property. 

So, it will be taxed at your marginal rate and subject to "all" taxes such as self-employment tax. 

Hi fellow investors! I've got a potential sub-to deal in the works and need a recommendation on an attorney to help set up everything correctly. Also could use an agent who's written up a sub-to contract! Anybody have...

Here's a few of my observations on the subject:*just bc markets have rallied hard doesn't mean they eventually have to crash, they could move sideways for a long time. 

Your contract effectively gives you the Right to Purchase the subject property. 

CRE is a very broad but niche asset class and you want to work with the people who do this type of thing frequently not just a few times per year. 3.)

These reasons make me think that you need to be at the forefront of someone's mind by doing direct mailing, contacting agents, lenders contractors, (whomever) frequently and reminding people of your specific buying criteria and other such strategies as a method for landing deals with less competition.

You should check with a title attorney to be sure as laws are always subject to change, however, I believe this first right of refusal only applies to Baltimore City, not the County: Under Code §6-1, before title to any single-family residential rental property is voluntarily transferred, the tenant of that property shall have the opportunity to purchase the property on terms considered reasonable in the residential real estate market.I would advise him to give the tenants notice, move them out, take care of deferred maintenance, paint/carpet and sell the properties vacant.

An additional question: In the contract we recieved, it states: "Seller will provide estoppel certificates as a required delivery item prior to the close of escrow and estoppels will not be subject to any buyer contingency approval.

When I learn how to wholesale it was for free and clear homes or doing subject 2 for mortgage.