N the $340k exit range, it is very difficult to get 70% deals and I have consistently made money in that range using a 75% rule, even with financing.

Your exit strategy will be challenging as well.I know you already said you were going to pass on this deal, I'm just giving you more information based on your subsequent comments.

You should never do a Sub-2 that you can't close on if necessary, either exit by selling it or refinancing it, both will require some reserves. :)

However, the contract is contingent upon clear title, so that is my exit clause.I did not put money into escrow.

I guess my main issue is covering the rehab/closing/exit costs.

The properties are being held as long-term rentals and then exit for the appreciation.

My target price 30-35k (wholesale is the exit strategy but buy & hold might work as well) mortgage balance 39k, monthly mortgage payments $576 (15 year fixed loan to mature on 2026)The challenges: Husband hold title to the property, mortgage under the name of the wife. loan balance is higher that my target price but not by much.what is the best way to structure this deal?

@David Franza the longer the term of a lease option, the less likely the end buyer will execute.Also, the terms that you would offer the end buyer should have been calculated when you made the offer on the property to begin with.Not trying to be a toot here, but when you lock up a property, it's the same as buying a stock..you need to know one thing for sure...Your exit strategy!

What I'm seeing is mostly daisy-chains, non-directs, that are marked up to unprofitable levels.After learning quite a bit about note investing, and practicing a lot, although I'm nowhere close to professional status, I think I'm ready to "get in the game".Most of my education is around valuing notes, exit strategies,and acquisition strategies (i.e. self-directed IRA's, etc).

There's also market yield (reinvestment yield), loan amortization, tax VS debt, exit yield etc.I recently started reading "What every real estate investor needs to know about cash flow..." by Frank Gallinelli.