Just plough ahead and do everything your obligated to do.  

Since you are looking for short term financing, I would go ahead with any of these and pay them off as you refi the property

However, from my own experience, plenty of buyers refuse to listen to advice and go ahead regardless - taking on more than I personally would recommend.So I guess my main point is you can't just blame big banks and government for people who get into trouble with Homepath properties.

Or you can use the formula of ARV (After Repair Value) x 70% = purchase plus rehab cost.There is a lot of information on Biggerpockets on this topic.

In fact, you are already a step ahead considering Real Estate Investing.:) hope to see you around!

I planted the seed of a "subject to" to give him something to consider. 

The taxes could be paid off ahead of time or at closing.

I'll go ahead and read those books.

I've got a long road ahead, but I'm looking forward to getting started!

If you could possibly structure the agreement and deal without your buyer knowing who the other whole saler is then I would say go ahead, or  just do the deal with them one time.