Hello BP,Currently resolving why my profile picture options are always slanted, but other than that excited to be apart of BP. 

Initial cost is driven by home buyers making it too high and rent is rarely sufficient to cover expences.

At 5% interest, that would be $45K a year ($3750/mo) to the seller.Problem is, that $45K would only cover the interest on the $900K.

This will cover everything....

There is about $50,000 in repairs that need to be done but he is including a $50,000 "gift certificate" to cover those repairs, which is pretty sweet.I definately know I can make a profit fromt his home when I put a buyer in it, but how can I convince him to go down below $1M?

I have ran into a few deals to flip and wasn't a big fan of HELOC, am I missing the bigger picture by trying to sell the property to buy a rehab?

No HOA, it’s a small lot, no laundry facilities, non-covered parking. 

Regardless, even when I included insurance, the total expenses were about 33%, but I usually make my operating expenses at the industry average of 45% and that assures me I've got things covered. 

Your pictures show the sheetrock has fallen off the ceiling.

Per the other questions re: Repairs and market rent - Yes and Yes, but I may want to consider negotiating this portion so that I am covered further.