BiggerPockets

First, the bank that approves the short sale will prohibit you from renting it back to the current owner.

$288K+$5K for a $331K fix and flip is too much, even for CA. That's 89% of ARV and there's no way to make any money after paying all the costs on the purchase and sale.

If you're flat broke you're going to have a hard time getting an investment loan.

You need a LOT of rent to make this worthwhile as a buy and hold. Something like $4000-5000 a month.

Its way to thin of a deal for most investors, so I don't see you being able to wholesale it. This is effectively a retail sale. Now sure why you're even involved.

Carlos,
Congrats on working on a deal! Some folks are too afraid to pull the trigger on anything at all, so at least you are trying.
With that said, I completely agree with Jon. that is a retail deal at best. First, If you are looking to close on something, you should be all in fixed up at no more than 70% LTV. Next, selling the property back to the original owners is not usually the best idea for many reasons. Finally, Condos are tough re sales and you have HOA's to deal with. Many times there are restrictions on renting them out.
Keep looking, and run from this deal FAST! :mrgreen:

Because I am not a math wizard, I will use simple numbers.
1. Find a single family house that is worth 100k
2. buy it for around 50k
3. sell it on rent to own to someone that can finance out in the next 12-36 months
4. They will need to put money down that is not refundable. give them a small portion of credit from the rent toward the purchase price if they pay on time.
5. the sales price should be the full 100k

Very basic, lots of details left out, but it is a basic outline. just make sure low LTV, single family homes, and tenant buyers that have light at the end of the tunnel.