Now if someone is convicted of fraud or some other nefarious scheme in connection with a real estate transaction then that might land them in jail but not normal buying of property subject to or any other way.

I realize I'm immediately taking another loan out and in the same position as before but I felt it was a more "safe" way to do it.

Stay safe.

You'll need approx 1.5 to 2m in equity invested in income property to safely return ~12% (15k) monthly.Until you have enough education keep that cash in the bank.

The purchase price is going to be 29k but needs between 2-3k in repairs so figured 35k to be safe.

Originally posted by @Khenan Newton:@Jay HinrichsYou never know what these people might want hahaMy car might be old but that just might be what someone fancies if they feel the need to sue. been doing this 4 decades no one sues anyone to just get a car in a real estate transaction.. unless you have substantial real estate holdings or are known to have LOTS of cash .. no one is going to spend the money to sue you... its just fear mongering.. and frankly one of the reasons dealing with wholesalers is so bad.. no accountability with most of them they just do deals that don't work and walk.. kind of like trying to sue a dead beat tenant.. 

Then join a small brokerage that just wants a transaction fee and follow that model.

If so what should I look for or go about doing this transaction differently?

I am using a split transaction to itemize the expenses/proceeds to total the selling price, correct?

Commercial mortgage brokers handling transactions in the area can give you an idea of the cap rates they are using to underwrite similar properties in the market.