Make sure you have enough margin where you cover holding cost, rehab cost, seller contingencies, and still can make a profit.

Made money on all the others.That said, I do not buy at auction anymore as I believe the margins are too tight now and am putting my money elsewhere.The first thing to do if you are serious is to subscribe to a service like ILFLS.

Now obviously if like your wife you bought long enough ago rising rents have made her property viable but purchase price to rents out here are just nuts especially with the current climate of appreciation.I invest buy and hold out of state but I do so where I grew up and do know the areas so it makes it much more doable.I don't flip myself, but know some that do and what I have heard is that the # of deals has absolutely decreased but that the margins have gone up so the 2 have offset each other.I think were I in your position, evaluate if your flipper friends would be willing to help you break into the market.

Don't chase the market or battle other investors for shrinking margins on bad deals.

They can simply get a bigger fee from true cash buyers as they dont eat up their margins with the extra costs.

If a property was properly acquired such that purchase+rehab is no more than 70% of exit price, then there is PLENTY of margin to cover the extra 3% to the HM lender.

Here's my criteria for max purchase price:Pre-probate: 50% of ARV less costsYou will work just as hard on a skinny deal as a good margin deal; sometimes harder.

That's a long list of required repairs for such a slim margin.

If you need to get out, you must be able to lower your asking price.Since your seller wants market, there will not be this margin, so if your assignee backs out you will necessarily be on the hook for the contract that you signed with the seller.

The area is really depressed and the margins can be a bit thin, but there's money to be made.