They might be able to hold off the first payment 45-60 days, but my guess is that they make one or two payments (thus reducing the "projected profit") before the transaction is complete.

One technique for a new person in the business is to explain that they are new in the business, working thru college, paying for xyz to help out xyz, and are glad that they are starting out work with nice honest people like........yaddi, yaddi, ya.....After the story next is qualify....who, what, why, how come, how many, when, why not, ect.... this is where you gather all the info on the transaction you catch my drift.Next land Note: during the landing stage is where you begin to propose the offer, this is the same place where you remind them about all the bad stuff wrong with the house.Next is the Close....later got to go to work

But I worry a bit that all the transaction costs (time and money) in finding and buying the house on the front end, and and selling the house on the backend, with accompanying paperwork/legal/etc, would eat up so much margin as to make it difficult to make real money on the rehab itself (i.e. improving a run down property back up to 'market' value).For those doing 1 & 4 (straight flipping or rehabbing and flipping), how do you find properties priced low enough, and sell them high enough, holding down your costs all the while, to make a decent profit?

You pay all of them at year end.I would always recommend consulting a qualified accountant that specializes in real estate investments before doing any major transactions.

Some of the factors that will effect the note are:equitycredit of payorpay history or seasoninginterest ratenote position.

Congrats on your first transaction.

sunsmicro- 33 transaction so far and counting....what is yours?

The taxes & insurance are already incorporated into these transactions.

Price/ Unit $ 52,500 Price/ Sq. ft $ 74.46 Rental Income Scheduled Rental Income 48,000.00 ( per year) Vacancy (0%) 0 Effective Rental Income 48,000.00 Service and Other Income 1,615 Effective Gross Income 49,615.00 Operating Expenses Utilities: 4,320.00 Repair & Maintenance 1,300.00 Turnover Costs/ Cleaning 3,000.00 Taxes 2,568.00 Insurance 1,750.00 Total Operating Expenses 12,938.00 Net Operating Income 36,677.00 Debt Service 22,884.00 Cash Flow 13,793.00 Cash Flow/ Month 1,149.42/mo Cap Rate 9.178% 4 2-bedroom units rent for $550 4 1-bedroom units rent for $450 Can anyone help me figure out if this is a worthwhile deal?

Not a bad idea but will the house sell in 6 months for what you are willing to sell and have you taken into account the transaction costs (including a prepayment penalty).