I have many rentals and if I send you my schedule E, you'll see it shows that rentals cost more than just PITI to own, sad, but true.2) If you just "ride it out" for 3 years, and then add back your maintenance and replacement later, and don't think of it as part of your rental, you don't really have the $1,000 cash flow "ROI" that you speak of, but you'll come out ok, most likely.3) Assuming you're an aging "boomer" as I am, or as you stated, at least headed for retirement, you probably made a good move, as if it's a desirable retirement destination for boomers with money, the competition for houses in that area would likely grow, so you may have been wise to lock something in now.It's hot over there, don't forget to get the air conditioning serviced regularly - hopefully you've got someplace cool to go in August.Joffrey Long

You're better off doing more in-depth research to find comparable sales in the neighborhood if you want to get a more accurate depiction of what you're looking at.

If you have the Tax and insurance #'s you should be able to come up with a more accurate number based on the actual expenses instead of the 50% guideline.

I can see the benefits of both situations, and appreciate your insight, but was hoping for a more thorough answer.

Also some information on wholesaling, i understand the basic concept of it but could use a more elaborate step by step process to follow.

(so he says) You hit the nail on the head with the price...I think a more realistic price for a quick sale is about $150K so if I can show him a more realistic picture of his situation there seams to be some equity since he only owes $107K.I don't have a prospective buyer yet but I have several people I plan to pitch this to.At this point he has tentatively agreed to the structure of the deal above.

I take the ARV and multiply it by .94(this covers closing costs, commissions, and a little bit extra) then subtract your rehab costs and holding costs, and profit, and you have a more competitive offer.

Maybe you can upload a pic of yourself, it helps give it a more personal feel.

Or is there a way to rent it out to a more lucrative business now that I have found there is a bathroom down there?

Typically you don't count your own labor cost as an 'expense' - but rather the end result of the calculation (IE: currently ~ -19/hr.)Had that been something like +10k net for 180 hrs you'd be at a more respectable 55/hr.It makes more sense than trying to do it like you're doing contract work and giving yourself an hourly salary estimate. :)That kinda changes if you hire people/partners/expand, depending on how you want to structure your positions (though its always cheapest to pay yourself as much distribution as possible rather than salary due to taxes... in the US anyway).