My advice to you is to consult a CPA with a background in real estate, before you proceed with any business formations.Let them know exactly how you intend to conduct your business in the beginning, once established and thereafter.

Many wholesale deals are vacant houses and don't have utilities on, don't have working appliances to test utilities, and/or can't have utilities turned on without moderate to extensive repairs.

.$130,000 Purchase price $2,600 Purchase closing costs $25,000 repairs $12,600 interest (computed on above items, 16%, 6 mo, $157,600) $11,900 points (computed on above items, 7 points on $170,000) $3,000 holding costs (insurance, taxes, utilities) $17,600 sales closing costs (6% for agents, 2% for other costs)$202,700 total costs$220,000 sales price $17,300 potential profitThat's sort of a worst case for the hard money costs.

You didn't mention anything about utilities, vacancies, upkeep, repairs or management.

All utilities are paid by the tenant..2.Do you do all the maintenance, or put some or all of it on the tenant buyer?

Maintenance @ 5%: $696 Taxes: $527 Insurance: $500 Utility Expenses: $2,951 Total Expenses: $4,674 Net Operating Income: $6,460 Debt Service: $4,126 Pre-Tax Cash Flow: $2,334 Expenses/Unit: $1,558.00 Unit #1SF: 660Avg.

I'm considering lease options utilizing my current PMC.

I have established an LLC and filed my dba, so that is taken car of.

Thus the monthly out-of-pocket debt service is not such a hard hit since we can hopefully get some utility out of that money (i.e. living space).

Fannie, who establishes the guidelines for conventional financing, allows a borrower to have to 10 financed properties.