What I'm trying to get at is, what is the best way to profit from the property without losing $$$ to the taxman?

In other words, make sure there is plenty of profit in it compared to the amount they have to pay and the repairs required.

Let them know your partners say that they wont be able to get financing on it unless it hits the 37k (thats where your subject to lenders approval comes in handy)Now i know you are taking a cut on your fee...but your sellers are more likely to accept 37k rather than 35k...and 3k profit for you is alot better than 0and if they dont accept ...let them know you are sorry you cannot help them out....and if they change their mind your offer still stands.Move on too the next one.

While you're waiting for this person to show up, you could have been renting the property.I could go on and on, but suffice it to say that lease options are not any more profitable than simply renting.Good Luck,Mike

Thank You again to all who welcomed me… and to all… Have a Merry Christmas and a profitable 2008!

I feel very lucky to make a profit on the first one.

If you are going to flip, the formula is normally .7 times the ARV (after repair value) minus the repairs, minus the holding costs, and minus your profit (if you're wholesaling).Good Luck,Mike

It tells you what you can pay for the property and expect to make a profit.

Even the 70% rule of thumb is based on some assumptions, mostly that you're using hard money for about six months, and your goal is a 15% profit.

Landlords don't have a very high profit margin, and what profit they do have it can't be spent hunting down the bad apples.