We are both extremely motivated by profit at that point so I feel like we have a common incentive to maximize that margin.  

I worry about so many here buying rentals in marginal markets with 3.5% down.

But you have a point, I know this won't be the smoking deal I'm looking for, but it has everything I want, I guess I could of shortened the post by asking is buying a property at the 1% margin a good first deal or not? 

One noise complaint from a neighbor and you can lose the income.I feel the same about air bnb, make sure you are ok with the rental by itself as a long term rental, in case any income you get from an adu or air bnb goes away with a city ordinance.Sounds like a marginal deal without, and a nice kicker for upside if you include it.We would probably do the deal if it was currently allowed by the city, especially if it was in a growing area metro area

However, you need to consider that over time taxes and insurance do go up, so if the margins are very thin in its present state with limited expected rental growth it might not be a viable deal. 

I’m also marginally terrified of how tenant-friendly this state is.I’m now investing in NC and I’m having difficulty finding deals that are worthwhile in my target neighborhoods, though I understand things are really tightening up in most areas of the country.

Can anyone share what kind of margins we should be shooting for?

If they are planning on selling "wholesale properties," I don't believe the margins on the properties they will be offering will be large enough for investors to even consider.

You want your margins to be even smaller?

Can you see that the margin is very tight?