Boston has a lot of competition between investors.Areas like Georgia, Florida and Cali has tons of REOs and sales on the market that are way below ARVs. which makes it easer to find a deal (in my view). in Boston, we have tons of Historic home and tons of money stuffed investors just waiting to pounce on anything that looks like a profit. and the worst part about it is that the sellers know it...

I would then negotiate from that point a profit split with 50% being the absolute highest and worst case for YOU.As to HVAC system new for 1200 sq. ft, a 3 or 3.5 ton is more than sufficient and you can get that done for approx $6k, although it can depend on electrical modifications necessary, electric panel upgrades, gas lines, and ductwork materials.If you are in So CAL, I can get you a good HVAC contractor.

We then acquire the property, intelligently plan a rehab, execute said rehab, and convert the worst house on the block to the best house on the block.

Worst thing he can say is no..

The worst thing that can happen is they could be rude and shut the door, but that rarely happened.

In addition, RE agents often have the worst combination of knowledge and belief - they believe they are experts when they are not, which is worse than knowing that you don't know.

The worst part about this situation is that this partner is family and close family at that(lesson 1 learned).

It's the worst thing you could ever do.

BOA is by far the worst at "misplacing" stuff my agent sends in MULTIPLE times.

I agree the numbers look risky but here is one route...have the seller carry owner financing on the property short term 1 year...put a sizeable down payment and before closing show good faith by purchasing materials for the property improvements...that way the seller knows worst case scenario if the deal goes bad they will get the property back in better condition then when it was sold...Then assuming all goes well with rehab you should have enough equity that you could attract a good HML...make sure to let the seller know what changes will be made to the property and be sure they are authorized in the terms of the owner finance transaction.