Now whether the authorities get involved further is a different matter.

Property will be fully stabilized by Aug 2014, at which point I would like to have the option to pursue a conventional loan.

I assume you can roll paint, so while you have these contractors lined up, as them what the cost would be, see what paint costs along with your materials and consider your time, doing this may save you some money on small things you might do yourself, but you can present the bids and the appraisal to base your offer on.You also need to explain that an appraisal is an estimate, not a true value and that you need to make a reasonable profit if you are in the business and justify your offer.Saying older lady doesn't mean much, if she is elderly I suggest you take some additional steps after you get a contract and that is to involve some center of influence, her kids, her attorney or someone who may advise her.

Whether you are involved with the deal or not, it sounds like both parties would persevere with their intentions.

As I live in an affluent area of the country where avg. homes are 300k range I have thought of exploring the option to invest out of state where I can get involved immediately.

If commercial you can usually put fees onto the HUD-1 where SFR you get RESPA involved.

I know we'd all love to see you, and your friend, stay involved.

It would be a good time to modify your note for a payment by check.Within 3 or 4 years I'd say the IRS will get involved in an audit.

All good responses, but more importantly......you're not likely to get the property under contract for an attractive wholesaling price, when a competent agent is involved....it happens occasionally, but not often.

I am glad I decided to stop paying low rent and purchase a house before investing to see all the steps involved.