Are the capital gains going to eat a chunk of his profit?

That’ll eat up the rest of your $250

@Arthur KineardHow do eat my cake and have it, too?

And when I do, I get outbid at far beyond asking (which I'd be open to do if I were buying a primary, but seriously eats into the already small margins from an investment standpoint) I’m from California, and I know the market is in a major upswing here, do you guys feel this is the case nationally?

Account Closed Yeah the challenge I am facing is almost every property I have found is either way overpriced to be profitable, priced reasonably but in a high HOA area that eats the profits, or cheap but not in an area that can draw the rent (or tenant type) I am looking for.

Building was reassessed, so taxes went up, eating away at my non-existent to negative profit margin, and making this financially more precarious. 

In hindsight it's easy too see.I don't see any unhealthy development, at least not yet.

You made a mistake and you are just going to have to eat that cost.

I am not making any $$ on it, really, because after repairs, vacancies, etc. it eats through my generated income. 

If the tenant or one of their invited guests didn't hit it, then you have to eat the cost unless you can find out who did hit it.