it ignores (1) all the costs that have to be expended simply to process a transaction, and (2) the higher maintenance costs you will be incurring in that type of neighborhood. 

However, while anyone who purchased in 2022 should expect a loss, that doesn't mean everyone is going to/ able to  accept one until the house has sat on the market for a while - probably different at your price point - ie more expendable $; able to absorb a loss.

You might achieve the same result you're wanting with less time expended. 

For $1,500 renters in Cincy would expend very nice place on a quiet street and desirable area.  

My client bought a 22 unit building and used this strategy and walked out of closing with a check for $800k to perform the rest of the renovations, paid himself back his already expended rehab costs and his entire down payment.  

Of course it shouldn't need to be mentioned but the more expendable cash flow you have going through this the better and the faster you can pay this down or off and utilize the HELOC in any other way people can think of.

You would need to notify them in writing that you will not be expending their lease and they will not be transitioning to a month-to-month lease. 

I'll admit I did a funded a few deals in the early days that I wouldn't jump on today.I fully expend to have 1 or 2 lose money once I'm at the 50-75 passive opportunities invested.How about you?

I can't control any of the rest of it, regardless of my feelings, so it's generally pointless to expend much time or energy on worrying about things outside of my sphere.

Quote from @Luis Maza: Hi all, returning to the game this year and would like to pick your brain a bit, we started working with a wholesaler that will send us properties here and there with the "wholesale" price, but every time we check the properties and add the numbers, the margins are, well, I am not sure, too low perhaps, maybe we are getting to picky, but this is my dilemma for example...Today we got a property, wholesale price 300K, rehab about 50-60K, ARV is about 440k, but with the cost of hard money, we have about 100k cash, hard money interest at 11%, keeping the property for 90 days while we finish the rehab, closing costs,  commissions, we ended with 30k profit before taxes, while it sounds appealing, adding up all expenses and cost we ended up expending 50K on rehab(labor/materials) and about 50-60K with cost of the loan, interest, commissions, etc, everyone makes money, happy with that, but it seems that we are working to produce a 100k for everyone else, while we make 20-30k if everything goes well...In my opinion, we are not really getting "wholesale" price, it seems that we either buying to expensive, rehabs are much more than we would like to spend and the cost of borrowing that money is too high...We came up with thoughts as: lets fund it ourselves with money from a close friend/partner that we will bring in, and that would save us 10-15k here and there, but still, is that the norm now?