When it’s the opposite situation, the process may be delayed.I’m glad Bill touched on Emotional Equity, because this is a key component.

Can you break down this component of the equation?

In Wisconsin there are several components needed to create a valid contract, all must be met to be enforceable.  

We are in midst of as much of an amateur as at any time in history - everyone is in RE...And finally, there may indeed be some value ad component to this which you've missed...

Unlike the market approach to value where the subject property is never adjusted, in finding the cap rate, the beneficial aspects (or detriments) may be considered in selecting the most appropriate cap rate.There are many other factors as well, but this should get you started.

I don't think it will compare well to wholesaling houses.One of the main necessary components for wholesaling properties is acquiring the property significantly below market value.

Also a big component for me is that my PMI insurance will be around $150 per month due to only the 3.5% down/equity (with FHA, PMI insurance is required for 60 months unless I refinance).Here are my current (rough) numbers:(Please check and make sure costs look accurate)Sale price = $110,000Est. rehab costs (added into mortgage) = $6,000Total property cost = $116,000Closing costs added to mortgage (est. 5%) = $5,800Total Cost = $121,800Downpayment of 3.5% = $4,263Mortgage on $117,537Estimated PMI insurance = $150 /monthEstimated PITI (excluding PMI) @ 4.75% interest = $740 /monthTotal monthly payment = $890 ($740 PITI + $150 PMI)Currently rents for $600 per side.In this case, I will only have roughly $600 per month of NOI (using 50% rule).

In summary do your homework, vet the expenses, make sure a cap expense allocation is included (even if RE has just been rehabed the lifespan of all components has started), find out exactly what is included in the PM costs and if that is the full extent of the PM fees (i.e. is there a markup on contract/maintenance work, are inspections included, etc.).Good luck

I include most major components in my initial Rehab that is not projected to last more than 5 years.  

I know three major components of real estate are 1.