But dealing with marginal people is part of doing business as a landlord with tenants, people who by definition do not own the roof over their own heads and are on average 36 times poorer than a homeowner, according to the Federal Reserve. 

I currently have my criteria set at 30% margin, which works great for my area.  

You either continue at a lower rate of return/margin, or have to propose a significant rent hike just to get back in line with market rates.

@Aaron Taylor Because of the slim margins, I figured I could buy Subject to the loan and sell on a lease option.

Ultimately he agreed to pay for the credit check and background search and I approved his application despite his borderline credit score and marginal reference from his current landlord.

A marginally a-float blue collar worker, with a family, at least one job does not have the time, focus or financials to maintain or especially remodel a home (work for equity).The long a go Gurus touting the virtues of buying super cheap junkers, with zero rehab advertise rent to own, or directly into Contract for Deed, zero rehab, put folks into those homes. 

I currently have my criteria set at 30% margin, which works great for my area.

I'm not a flipper, but I wouldn't imagine that's a high enough profit margin for that big of a price tag.

@Neel Jain, yeah, I have about 7 properties I have identified that could work but being an out of state investor I want to make sure I have margins.

Its a good deal for us either way, but of course, want a higher profit margin.