Consider renovation costs and potential for adding value through improvements.Resources and Tools:Local Real Estate Networks: Connect with local real estate agents, property managers, and investors for insights into specific neighborhoods and market conditions.Online Tools: Use real estate websites and platforms to analyze property prices, rental yields, and neighborhood demographics.Tips for Canadian Investors:Tax Implications: Understand tax implications for Canadian investors owning U.S. property, including withholding taxes on rental income and capital gains.Legal and Financial Advice: Consult with a cross-border tax specialist and real estate attorney to navigate legal and financial aspects of investing in the U.S.If you would like to discuss further/need financing please feel free to reach out.

You cannot withhold repairs for lack of rent.

Also if he is just taking PITI into the equation, he is missing/withholding info about utility costs, stocking/supply costs, cleaning costs, etc. 

You need to make Estimated Payments to IRS if your W2 withholding is not enough to cover the amount discussed below. 

As soon as they start making threats or withholding rent- take the steps to fix the problems, if they exist, and put them out. 

If your tax payments (quarterly estimates or withholding) equal or exceed 90% of your tax liability for the current year. 2.

I'm with Will, buying at 85% is almost certainly a loser with holding and sale costs...Hard to blame the wholesaler, though.

@Eric Fichera Buy A/B  located properties, keep up with all local permitting & licensing, use a well drafted and fair lease, don’t unreasonably withhold deposits and be a responsive landlord or hire a responsive PM and you won’t have anything to worry about.

How about withholding? 

Getting to point #3 on this, I think this happens artificially to a degree due to the amount of agents withholding properties in Q4 of 2023 because of seasonality.