Focusing on the wrong thing?

[John Dunn]

I'm crunching numbers on my first investment purchase and suspect I'm focusing too much on the profit margin during the first two years (low single digits).   I think the margins will be between 10% (no refinance and lower interest rate) and 15% (refinance at a lower interest rate) in 5-6 years.   My gut instinct is the first year margin isn't the most important thing to focus on as long the property is profitable in the first two years.  Margins will improve over time since the largest expense (mortgage payments) is fixed.