He could have just as easily described the sample house to be cash-flow positive and profitable for the investor in spite of the operating and holding costs he stated.

I can't speak to wholesaling, but I can tell you a little about my experience with buy and hold properties and working a full time job (10+ hr days and travel) and build off of what @Jeremiah B. was saying.

He isn't in a hurry but can easily be persuaded to sell a free and clear house if the money was dangled in his face.3) As a rehabber, what would YOU pay in this situation for this house?

Simple cosmetic on such small SF can be done for that price easily.

You can patch it, sand it, and repaint it easily.

I would easily be able to do it myself or even hire a couple grunts for $10/hr to get it done cheaper.

The bright side is that it is a single story with an unfinished basement, so 90% of the plumbing is easily accessible.

I just pulled up an article http://www.wikihow.com/Avoid-Probate and was thinking that if I could easily find these people over the past couple of years, it may be a very good list to mail to.

If tenants or visitors to house tested high for lead-poisoning, I could easily be exposed to lawsuits.

I am traveling so have not seen in the house, but the pictures look good.