Rich Weese I thought you retired, that's not retirement....LOLI just cashed checks fell into a wierd short sale that I'm not going to profit from and made a couple (okay, maybe more) posts here...now that's retirement!

Asking price is $60,000.Rent $850Tax/ins $125Pmt-$459.00(thats financing 60@ 4.5%fixed for 5 years on a 15 yr note)Profit $266Here are the variables-I think i could get it for 52-55K.

You'll end up paying about 10% to sell the place leaving you cash out in the $72 - 81k range... leaving you $5 - 14k profit... that doesn't include any holding costs... seems pretty tight.Your other strategy is to invest $19k ($12k down + 7k rehab) for what amounts to $70 a month in cash flow per your numbers above (used 50% GOI - Mortgage defined as $500 - $170 in taxes)

Yes, you'll have closing costs, but the breakeven on paying back these closing costs from your incremental profits (from buying new rentals) is typically less than a year.

Agreed..I would just pay the contractor whatever he is charging for the rehab then keep the profit for yourself.

That number is the potential profit on the deal.If that number is high enough to justify the work, you potentially have a good rehab deal on your hands.

And if you do get to get a good property and make a good profit , show some love to your source.

Wholesale deals are pretty easy to set up, you need to find properties that won't sell retail and you need buyers who can profit, by flipping it or leasing it.You can find properties that don't seel on the MLS, look for expired listings to start with.

Not sure what the rehab costs were, but hopefully low so that she made a nice profit!

Here are my reasons:http://www.biggerpockets.com/renewsblog/2010/02/24/should-you-get-your-real-estate-license-investors/Btw, while it wasn't my primary motivation to begin with, the best reason I now see for having your license is the ability to control your deals, especially if you'll be selling your properties (in other words, less important for those who are buying and holding).But, access to the MLS and extra profits are two other important reasons...