I like removing that problem, even if it costs more, because everything is clean without concerns and potential future problems that can pop up with little warning.

That equation subtracts 30% off the top to account for your profit (20%) and costs (10% -- realtor is 6%, holding is around 2% roughly, closing costs are around 2% roughly).I think with a house listed at 25 percent of value, I would definitely be concerned that your estimate of 20k in repairs is not enough.

At DoHardMoney we do things a little different than most Hard Money Lenders and as a result we’ve disrupted things in a way that competitors feel the need to raise doubts and concerns about our systematic approach and our business model.

Given that most Heloc's are interest only for the first 5-10 years if you are in danger of defaulting then you should not be flipping in the first place.

The danger is when you found a property but do not have it tied up with a purchase agreement.

That fiduciary responsibility to the buyer will be one of mere ethical concern but he/she will be representing your best interest and has to make seller aware of that.

Total profit: $565K, based on an out-of-pocket of $274KI’m well aware of the dangers of doing a leading project like this, before something else similar has confirmed the viability.

Many of my friends get to their 40s without any concern for financial responsibility.

The grittier matters of concern is likely to be your mortgage rate and consequently your monthly payment and other monthly expenses and to what extent these expenses are completely covered from rental income (think debt service coverage).When researching, you of course want to look into the FHA loan limits on a multifamily as it applies to you and where you are able to buy in/at per the limit.

You'll have to see how each State Attorney General defines and applies "gouging" buying or selling anything from the norm or taking advantage of the public......usually they are more concerned with gas prices, fire sales, going out of business sales, but they can certainly touch on real estate transactions and do (usually in larger sham transactions).