The 30% equity spread that Jim was outlining will cover all your expenses and profit margin NOT including repairs.

i would pass as well. not worth the risk, and i don't see the bank making the necessry margin

These are both a dangerous assumptions, in my opinion, because, as Warren Buffett or Benjamin Graham would say, you have no "margin of safety" if the economy downturns for a while...AND because you are still highly leveraged.

If everyone were to just wait until others do it, not only does it take longer, but profit margins deminish as opportunity decreases.

You asked about the deal and I explained why this is very marginal as a rental (although not as a flip).

it was the one with a young guy who knew a bunch of his buddies and they were all helping him.he did a great job and things he said were very spot on...the only thing i could see that "changed" a bit without being pointed out was that in the very beginning of the show - he mentioned a 250,000 profit...by the end, it was 140,000 - after the property was appraised.he bought it for i think 500k, lived there for 2 years...did 35k work to it and it appraised for 675,000 [and they didn't show him selling it, just showing it - then the show ended].minna - hope all goes well man - what was your profit margin at 12k for the rehab?

Being off on exit value, expenses or even time immediately erode your profit margin.

Margins are very slim with not much room for mistakes.

., 6%, $3,200 monthly paymentmonthly gross rents currently are about $14k, with 5 vacancies, so total potential monthly gross rent is about $16-17kThere are many on BP who warn against buying rentals in marginal areas (75% of my tenants are S8) but also some who think it's a good opportunity (see Lisa Phillips' excellent post on War Zones).I used to live in St.

The margin + prime rate is how you'll determine your current rate each month.