I would like to have some extra margin of safety since Houston rents are likely to go down over the next 1-2 years.Cameron - Since you are from Houston area, are my expense estimates reasonable?  

The problem I have seen doing that is that there just isn't much margin in it.

These expenses can add up quickly and close in on your margin.  

Sure there is profit in the margin for those companies that manage those kind of workers.

By the time you add closing cost etc $15k is a very thin margin were something to go wrong or your estimate being off.Have you tried to get the seller to do a loan modification?

Give yourself a built-in margin of safety for every offer.  

I purchased a few foreclosures to flip in 2013/2014 with marginal success and am looking to stop reading and actually beginning to build a portfolio of rentals.  

A lot depends on your risk tolerance, projects you do in a year, profit margin and any plans you have for yourself in the future.

The wife did not want to play ball and now the late fees and interest have killed the margins on the deal.  

As a result profit margins are very thin here.