I have become familiarized with wholeselling process it applies to single detached family homes.

They have to get some engineering done and a soil test before they apply for the permit. ( Est. 2 weeks) Fresno wanted 4 weeks for mine permit and we decided to pay extra which is supposed to bring it down to 2 weeks.

You need to make rent close to the fair market rent for the property, the rest or overage can go toward the option.To level the deal, if needed, give credits to the buyer of up to 3% of the sale price in the closing costs normally paid by the buyer.Interest rates are irrelevant on the seller's side the buyer is not assuming the loan.Don't attempt to wrap the mortgage as a subject-to deal as this is a lease and an option, you can look at principal reductions and apply that to the option, but again, you will then be accepting payments on the option and that is seller financing.

. • Seminars and blog answers (like the one I am writing) are general in nature and may not apply to a specific local because each local is unique when it comes to investing.

Really great information that I can apply right away.

If the lots are titled separately, then I would run the numbers as 2 separate deals, figure out what the value of the lot is vs. what the ARV of the duplex is, and then how much of the purchase price I feel would actually be applied to the lot. 

There is a nice single fam. I am interested in, however it's current flood zone status is what is holding me back and probably plenty of other people back as well..Just curious has anyone ever gone throught FEMA for a...

The same thing applies to the other post as well. :)Tiger, I'm seeing your valuation process as perhaps a conventional bond approach, financially logical but IMO flawed if you're assessing from the point of view of an IRR  to some degree as in notes, having a valid opportunity cost of like investments is difficult to arrive at.

If you plan on holding for long-term, my comment above applies.

Most tax forums say that is taxed at 25%.What they don't clarify is does this tax apply even if you actually had no tax benefit from it during the period you rented it out because of your other income?