Hey @Keenan Patton,This deal looks solid with a projected $60K profit, $435K ARV, and a $13K assignment fee in Northern California.

In the instance you refer too, this is in florida and I have seen in FL defendants get attorneys fees covered.

For example you'd buy a 200k property for 100k, spend 50k to rehab and then get it appraised for 200k and pull a loan for 150k.

Most turnkey companies proforma does not tell the complete story and that is why is called "PROFORMA" OR "PROJECTION", they don't account for the true vacancy, leasing fees, holding costs, and Headache factors that come with a Class C and D properties and neighborhoods.Hopefully, they can help you get to 100% occupancy and sell the property so that you can re-invest in a better neighborhood and relatively newer property like 2020 or newer if is possible in that market, or just go to another market you understand better or have some kind of connection with.All the best and keep us posted on your progress.

Found my deal on Zillow, ran the numbers, pulled the trigger and flew into town to do some of the work myself with the help of some family with experience fixing houses.

This is probably a question for your personal CPA or if you don't have one, paying a consultation fee to a Real Estate centered CPA would be a good investment. 

My wife and I own 3 properties in Colorado and are considering pulling some equity to purchase an STR in the Tampa Bay Area.

We also have a firm policy, always enforce late fees and deliver a notice to pay or vacate on the 6th.

The only thing that I see missing if they are purchasing with hard money debt they may want to factor in 3% - 5% for closing costs (points, fees, title, etc) Thx Zachary!

Real estate is about having that flexibility is about utilizing leverage if you want to or pull back when you rather just collect.