Andrew You have to factor things like:- vacancy- property management- repairs and maintenance- replacement reservesin addition to the usual PITIA (Principal, interest, taxes, insurance and assessment).

• Addition costs (additional bedroom, bathroom, etc.) per square foot?

Additional info: $5000 profit for me and selling to a flipper with a $20k minimum profit.

In addition, I am currently studying for my CPA and I am considering what area I plan to be a specialist in.

I'm making around 20 cold calls a day on FSBO's offering full price on terms and discounted cash offers to those with higher equity but every seller believes they can get full price or more because they say "houses are flying off the market in my neighborhood" or "I have no doubt that it's going to sell soon".

If you are wanting to add more properties, it probably makes sense to pay the regular payment and save additional cash for other opportunities.  

So I'd say the seller(s) should consult with an attorney or accountant, but it's possible they may owe much less than 15% or nothing.Also as Account Closed said, seller financing is also often attractive to people who are concerned about taking a big tax hit in one year - instead it's "pay small amounts as you go, over time as you receive the money" and is great for a number of reasons (no or a favorable interest rate for you, no bank BS, build long-term relationships and credibility with future sellers, possibility to discount in future with a payoff offer, etc.).It's worth having in your mental toolbox even if you don't use it on this deal.

An all cash, no loan transaction).For this reason, I calculate both cash on cash vs. total yearly return on my out of pocket money (which includes the down payment).Also note that usually you pay the first month of the mortgage in addition to the down payment, plus the whole of the insurance and (some) taxes at closing.

He is selling his condo off the market for a discounted price since it needs some work and also he wants to get rid of it.

Not working more hours than that (750) for any other income.Then I realized that when managing multiple properties there are additional rules and to get around it one can permanently elect to treat them as one but then it could fire back when selling one of the properties... and then I am lost.Can you recommend prescriptive guidance on it?