Some markets simply do not cash flow.

@Joe Villeneuve I will be extensively rehabbing both buildings, in the attempt to re position with increased rents.

Also, as a wholesaler, you don't really have title, you yourself simply have an option to buy at a stated price (depending on the contract, you may not even have the exclusive right) for a predetermined amount of time.  

Although if he says it came in at $150 psf that doesn't sound likely to me that he did it himself.Ok, so now I suggest you simply ignore sunk costs and move forward from where you are now. 

Grant Thanks Grant,I feel like with the last home we simply didnt have enough down payment (roughly 10%) to absorb a hit that we took.  

I'm happy to tip when someone goes above and beyond, but I don't simply tip someone for doing the job they are supposed to do.  

@Don Meinkesounds as if they are "attempting" to look out for you from their point of view.

I would like to get feedback to clarify the time frames and would also like to hear what your experience has been with evictions when a Tenant doesn’t pay the rent simply because they say they have other expenses and not enough money.

If your rent numbers are good, then you could be in good shape after all.Also, as another option, I literally just asked this question to a lender yesterday - you can buy out the homestyle renovation loan before it's been completed, so that should mean you could get a hard money loan to simply buy it out completely and be in first position.That being said, I'd pursue the HELOC option first, keep the hard money option as a back-up option.  

My current strategy is to simply buy & hold.