We learn all the lessons and some of the rules along the way: Some easy - some hard!

I, too, was thinking about going to a six-plex or something like that for my first property but I don't have the funds for repairs and you know Murphy's Law rules in those scenarios.

@Christopher M.Thanks for your reply, it's much appreciated my fellow Chicagoan :)I will respond in order of your points...with regard to the purchase price, yes, I understand the 70% rule, and the purchase price of $43k was based on the exact math you described. 

I just learned about the 70% rule and debt-to-income and some other rules of thumb.All in all, what i'm trying to ask is, are there any important terms and/or concepts that I should really get to know before fully immersing myself into wholesaling?

At the very basic level this does not meet the 1% rule personally I think you could find a much better return on that money.

@Gregorio Martinez the reason capital gains tax isn't really discussed when flipping a property is that it falls under different rules.

Now a bank will have cut and dry rules... so either partner with someone and bring something of value.

The right to change the lock is even further supported by it being at the request of his tenant.

If you’re buying it for 100k and can pull 2k per month in rent you meet a 2% rule. 

But the reason you want to do it this way is if it goes to court and you have the option fee going toward the purchase price, the judge could easily rule that it's not an option, but a disguised sale and require you to foreclose instead of evict.