If there were a total loss on Day 1 of the property, I would essentially be cut out a check for 171,000 (minus my deductible), even if I did not plan to rebuild, because there would be no depreciation.

I think building a buyers list is the most essential and first step in the wholesale process.

I plan to rehab both and initially planned to do a cash-out refinance when complete.There were some difficulties with financing this deal, mainly because I already have five loans for other houses, so I raised funds with essentially a HELOC and a crowdfunded personal loan to purchase the house for cash and cover the rehab.

Same with an all brick home, property on one side of the highway vs the other, in a certain school district, a special neighborhood association, or top of the hill vs bottom...

We don't have any official contract between us but but we have been together for 11 years and are essentially married.

Stay disciplined.For the final little tidbit, if you do this successfully, you will essentially be doing EXACTLY what you were prepared to pay the warranty/insurance company to do for you, and you just put the profit they would have made from you into your own pocket instead of into theirs.  

Essentially, have you tried everything to make the properties perform better?

If my asking price of 50%-70% of the ARV does not cover the sellers loan then the deal is essentially eliminated correct??

Basically, he is doing all the legwork up there (since I don't live up there or know Pittsburgh as well as he does), in terms of having found the property (and other future properties), getting a contractor for repair/rehab bids, overseeing the rehab and repairs (as well as doing a good deal of the work himself), and of course landlording and handling any maintenance and/or repairs that come up.So essentially, this is really his deal, I'm mainly just putting up the money/financing.As far as the free rent… I think that is just a bad idea… They should also pay rent (but it could be deducted) from their portion of the “profits”… But free?

And o yea… You almost get $99 worth of free stuff… So essentially the classes are free!