If you buy turnkey in memphis and then sell in 5-7 years with realtors and a traditional sale, you will likely lose money.The commissions and closing costs will eat any profit you have realized and this assuming your tenant stays for most if not that entire time period.

I say, "Because I have a day job, there is never any pressure to lower a list price so I can earn a commission faster; this allows Sellers more control.

The plan was to either buy through a short sale or just do the short sale process through a title company / listing and worst case there would be commission for sale.

Assume you pay 5% commission and 1.5% in closing costs, you're walking away with about $6,000.Option 2, Keep: You didn't mention taxes and insurance, so I'm going to assume that is escrowed in the mortgage payment.

The market value is $23k;the owner has agreed to take $13.8k as long as the buyer covers realtor's commission and closing costs;i estimate a buyer's total cost around $16.5k.Does this sound like a good deal and am I in bounds legally?

@Grant Gaffney sounds like you're a fan of commissions.

Then I take the calculated holding cost (insurance, taxes, utilities, etc), rehab cost, and transaction cost (closing cost, sales commission on flips, etc) and subtract from the ARV x .70 number.

It started out harmlessly enough,where wholesalers were finding properties, usually distressed, and marking them up comparable to a real estate commissions and selling them to investors who would invest their own money, sweat equity, and time to turn the property for a profit.

If you act as a broker, taking a commission on a sale, you need a license.  

In the contract it did say that I am responsible to pay the commission for the auction house.