He has the follows break down.Wholesaler makes:$4X,XXXSeller makes $9,XXXOwed on property: $1x,xxxAt night title sends me an email saying that the seller needs to bring money to close and pay off the debt.

I'd save the money on a credit repair company and put that money towards paying a debt off. 

Which might be OK, if you make great cash flow on it and have paid down your debt principle significantly before selling (not to mention the initial equity that you created through the initial rehab).

Presumptions we had on debt are being challenged.Other ideas being challenged are the views of doing all the rehab ourselves to save money.

Paying cash and having no debt is a great way to invest. 

@Kevin McGuire I wonder why that listing expired, those numbers don't look too bad.With 20% down, the debt service (at 4.25%) is $32,903 annually.That leaves $17,924 in actual cashflow (just under $1500 monthly).I wonder if those numbers are legit, or if due diligence brought most people to different numbers.Anyway, student housing is always going to cashflow better than SFH, but it's also going to require more attention.

When you refinance, you might not increase cash flow if the value of the home increases significantly and thus the debt service increases to a level that would eat into overall cash flow. 

IF by some miracle they accept the cash and actually do relinquish possession, you get in there as soon as possible with a reliable GC who's willing to renovate the place in January.Then you put it on the market, reaching out to just as many agents as you possibly can.

Banks that sell their debt to Freddie & fannie Mae will more than likely loan in a LLC.

You should calculate the investors' returns based on the option you chose: JV (equity vs debt) vs syndications.