And now next is health insurance.

Here in Maine, it routinely gets deep into the negative temperatures in winter, so lack of power/heat/hot water can quickly become a health and safety issue, especially if there are small children/elderly or those with health issues in the building.

@Brandi Smith, Here is a decent one from oklahoma.govhttps://oklahoma.gov/content/dam/ok/en/orec/documents/contra...It has a section for additional conditions so be sure to add anything specific to your propertyBe Well!

I'd add that because wholesale deals are more likely to be atypical in some way (for example, they wouldn't pass a normal inspection, or are in worse condition than normal properties, and sometimes close faster than normal), some wholesalers or real estate agents that work with wholesalers will try to throw in additional junk fees to take advantage of the buyers lack of experience.

The rent will really depend on the condition of the propety and the time of year.

You typically need the owner’s written consent for pavingEven if you have the right to use and maintain the roadway, paving is permanent and changes the condition of their land.

@Dan LuoHard money could be an option, but it really depends on the ARV, current condition, loan terms, and your exit strategy.

People buying need to keep in mind the target audience a lot of young nurses in health care are not going to want to stay in the highest crime rate area of the city so pick carefully for the group you are targeting.

@Marc ShinIf you’re buying tenant occupied, make sure you get a copy of the lease, rent history, security deposit info, and a move in condition ifno as part of your due diligence. 

So, if you fail to apply the correct assumptions to a property, your expectations won’t be met, and it may even be a financial disaster.We use the following to rank Property Classes, in order of importance:Property Tenant Pool: closely linked to location, but not always.Property Location: closely linked to tenant pool, but not always.Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”Key metrics for each Property Class:Class A Properties:Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.Tenant Default: 0-5% probability of eviction or early lease termination.Section 8: Class A rents are too high and won’t be approved.Vacancies: 5-10%, depending on market conditions.Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.Tenant Default: 5-10% probability of eviction or early lease termination.Vacancies: 10-15%, depending on market conditions.Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years.