Determine local/state laws regarding wholesaling and determine if (1) you need to be licensed in the jurisdiction you’re considering and (2) if you’ll be able to operate profitably while remaining legally compliant2.

Some folks are happy with 5-8% profit margin and others don't look at much under 20%.It is all going to be up to you where you are most comfortable. 

Just like any other investment, if you take into account all your costs and buy at the right price, you can still make a decent profit.

You'd have to be a builder to really reap any sort of profits from an area as such. 

When you sell the property, and access the equity in the form of liquid cash, you make your profit. 

Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

Here is what I know-$250k Strong (my client) = 1/3 = 7.33 Units Each$250k Elena/Investor = 1/3 = 7.33 Units Each$250k Mike/Builder = 1/3 = 7.33 Units Each$250k Investment = Profit $2 to 3.3 million.Purchase $2.2Build Cost $4.1Total Cost $6.3ARV = $12 to 22 millionProfit = $5.7 to $16 millionConstruction to take 18 monthsI am meeting with a lender and the developer, Mike today.

Double check on permits if the previous owners has done a remodel.Do not rely on agents representation.Do not work with a dual agency as a buyer, the agents first commitment is to the sellers.Allow at least a year of seasoning before determining the profits of an investment.Happy to share.

Partnering with Billy Medlen, we saw the opportunity to create a win-win situation by transforming the property and delivering a strong profit.

Nobody knows so what I do is making sure I'm profitable, even at rock bottom rents.