Here's the situation:Perousing the internet and MLS I found a very distressed property that had only been online for about 6 hrs and I put in an offer; The issue is, I don't know what the heck I'm doing.

The only way to refinance out of this or to do the BRRR would be to buy something distressed and rehab it to create equity or buy in a very high appreciating area.The rehab part may be hard as I believe fha has stricter guidelines then other loans.

Would you, or have you overpaid for a distressed property if the cash flow was this good in its current state?

If it’s off market they’d need to be very motivated or it’s very distressed for them to sell at 49k

There were neighbors who were worried about the trash and rodents inside the property but we happy to see someone take on the challenge of this distressed home.Construction was estimated to be around $70,000.

If you want to get involved in the day to day & make an active business buy a distressed property cash, renovate it & refinance.

I won't make as much per transaction as a licensed agent that I may as a wholesaler, but I can use many of the same thought processes to find and list distressed houses etc. and to help investor clients find those diamonds in the rough before I have the capital to buy myself.

Up to 4000 mailings a month nowSkip tracing direct mail returns doing 100 sellers a month currently (haven’t been able to hire someone good on the phone yet)Soon to skip trace new arrivals to my distressed list.

These properties are distressed, and need serious rehab work. 

This type of financing is best used for distressed real estate (i.e. fixer) with equity in the deal (a good deal will make up for the financing cost - usually 8-12% and then some).