Hi Nathan it all sounds pretty good to me too.Partnerships can be tough on flip properties especially out of State.If your profit margin is in the $35-$40,000 category it's worth the split.It can be a bit risky splitting $15-$20,000.

Depending on your risk tolerance and skill level you may chose to:- Not cash out refinance as much to leave more cash flow or margin of error so your property still cash flows with enough to cover during rainy day (med risk - med leverage) ,- Refinance just enough to payoff the prior investor (least risk/lower leverage)- Or cash out as much as you can till the point your monthly cash flow is lower or near break even (max risk/max leverage), but ideally you bought so low that even if you get out the most allowable by conventional guidelines you'll still be cash flow positive each monthThe good part is the leverage were discussing is a 30 year fixed (if using agency financing) and predictable so you can focus on other variables.Good Luck~

Better sale price/ft..Either way, I would be asking myself what the ROE of the marginal costs of the additions versus the marginal cash flow created by it..

Working with brokers/agents who specialize in that asset class and are also investors is even better.Lot's of overpriced and marginal properties out there in multifamily as well.

Is the margin small?

The question will be will other investors except a lesser margin due to an overheated market??

Louis and its not as competitive up there, but my margin was pretty slim on that one when the dust settled.

The profit margin gets pretty tight when you are paying top dollar for everything.

I would also be concern that vacancies and maintenance issues would eat into your profit margin.

This is what I mean by "activity at the margin."