just in case you haven't read the other threads on the 50% rule (which i STRONGLY suggest you read)always factor the p&i payment based on a 30 year fixed mortgage on the PURCHASE PRICE (not just the loan amount). if you are looking at a property for $100k and put down $20k, you factor the payment at the full $100k and not the 80k. if not, you aren't calculating the true return as you are basically paying your own cashflow. any and every deal would appear to cash flow if you paid cash for them.

But like Justin said above, as long as you get the house at the price you want, then what the wholesaler makes should be of no concern.

Thank you Justin.

Justin and Scott, Do you think it hurts to say "purchase option" or something like that?

He should invest the $300 or so to get a real appraisal done.Also "The ARV is $130K" is different then "The ARV is close to $130K".First - he needs to know and show the real value of the home and then I think Justine is right on - he needs to discount it more.

I do this so that they get a "bonus" so to speak and it gets me higher up on their list of investors who they will call when a propety is soon to come down the pipeline.As far as someone buying a personal residence, or an inexperienced investor, I would agree you should have a "buyers rep" as they are required to look out for YOUR interests and not the sellers.

yes you can sue them but is that the rep you want?

For the delight of those with a legal orientation, the usual disclaimers: (a) No expenses (rep & maint, prop tax, etc) are in the calcs.

So that is what I mean by the TV will be the SEV – that is the same in most places around the country but since tax levels are way less – like this very same property in OH or MS or AL may be $1,200 taxes for the year – so if your off your only off by a few hundy a year – in places like Detroit if you don’t understand how the tax system works you could be off a few hundy a month – not a year.The reason your other property has the same TV and SEV is because the year you bought it they were brought to equal – if you look back in the tax records you will find the year prior to you buying it they were different (unless someone else bought it that year) etc…..From a straight numbers game since this is cash on cash you need to figure out what return you want / need but I think $30K for a duplex is way overpaying in today’s market – not just in Detroit / Michigan but in a lot of markets – I wouldn’t pay that in most of the markets I work in.Not sure if your property is really in the city or in the burbs or whatnot but there are better deals to be had in the city for sure – just my opinion and this really depends on the type of hood you buy in.But – I would examine three things….when you started this thread:-You were going to pay $25k – now your going to pay $30k-The rent was $1,600 now the rent is $1,300-Your taxes were $2,000 now they are $4,300How sure are you right now about your other numbers and assumptions?

I wouldn't collect the entire wholesale fee until settlement just in case anything blows up at the closing table.As I said before, unless an investor is buying this deal cash, it may be very tough to get a 4k wholesale fee on a 14k house..........Good Luck......