The balance of your profit due to appreciation is eligible for the capital gains exclusion on the sale of a primary residence subject to the $250K/$500K limits.

I see no problem with this if these fees are negotiated and disclosed properly in advance.

After a few months of research and educating myself on wholesaling and the proper way to go about things I finally made my first offer.

Its a balancing act between cashflow and equity.

The seller may well have had an incompetent agent or short sale negotiator, who wasn't keeping track of the foreclosure time line properly, or didn't get the appropriate paperwork to the bank.Just because the agent drops the listing price, this doesn't mean the bank will accept that price.

Any payments on the balance remaining from the original loan must be included in the debt-to-income ratio calculation for the refinance transaction.o Cash out to recoup gift funds is not permitted.

The balance 50% will go to debt service and cash flow.So, at $1400 gross, after expenses, you are at $700 monthly to cover debt service and cash flow.

If you take the latter reasoning and set up a new company for long-term holdings I think it would be very easy to signal to the IRS what your intent is by taking title at the outset in the proper entity.

I have decided to go with the 20 year, which gives me a good balance between APR and monthly payment.

As long as the balance of the mortgage gets paid off at closing, the mortgage company doesn't care if the seller sells the property, and the mortgage company doesn't need to give permission (or even know about it).In your scenario, the mortgage would be paid off during the first closing (with the transactional funds) and the second closing would be to sell the free and clear property to your end-buyer.