This likely will sound strange, but here it goes...

I recently came across a small shop in PA selling what I thought was the best Hot Dog I have ever tasted.

The shop was a small operation (just 2 locations). I t...

if @ john stevenson's #'s are correct (& so are yours), at a 30 yr loan, that $2196/yr cash on your $15k down is 14.6% cash-on-cash return.that's better than 10% history in the stock market.

I looked at the inspection report and noticed the inspector had noted that the tub drain was leaking in the crawlspace under the bath, and recommended to have it repaired and corrected.

Am I seeing correctly, that you are in Australia?

But Steve correct me if I am wrong.

Your NOI will be about $26,400, your monthly P&I will be about $963, and so your annual cashflow will be around $15,000, or about $1250/month.If you're contributing $50K to the deal for rehab, your cash-on-cash returns will be:$14,843 / $50,000 = 29.73%Even at a 50% expense ratio, you're looking at a COC of about 25% and at a 55% expense ratio, your COC should be around 20%.Assuming your rehab and gross income numbers are correct, and assuming your expenses aren't going to be ridiculously high for some reason, this sounds like a great deal!

Check your listing price to see if you are positioned correctly.

I appreciate the info.We spoke with our broker & she agreed short sales would be a better deal for us.Also you all are correct about getting pre approved first.

So, the fact that the wholesaler is making a lot of money on the deal altered your perception of the deal, correct?

If you're wholesaling, and doing it correctly, you really shouldn't need to do bandit signs anyways.