Overall with the known detractors, I am recalculating an ARV of 280K.So the numbers now look like this:ARV-280k70%=196k120k RepairsMAO=76kOffer should start at 65K (Good chance of getting this accepted)Even with the numbers a little tighter than originally anticipated, there is still a profit margin of 45-60K (Although with holding costs, 45K sounds right on the money).What are your thoughts?

But even if that ideal was realized, I suspect the overall impact would be somewhat marginal (assuming nothing else changed).  

This allows those investors to make smaller margins work, which is the competitive advantage.

It is exhausting, and the profit margin is not high enough to warrant the stress and costs.

Otherwise your margins aren't going to be all that great and it may be more of a pain.

So, a quicker sale with lower margins is often better than a longer hold period with higher margins.Btw, if you don't make a cash sale, I don't know any reliable way you'll be able to sell anywhere near market value to an FHA or conventionally financed buyer.

The better the deal the greater margin of safety.

It makes getting financing much easier, and gives you the some margin so that you can be patient and really find the right deals.Good luck!

Probably a money partner would be best case scenario for a deal with low margins like this.

Starting to think conventional turn key purchases are only possible remotely.The Key to what I am trying to understand with building spec. is making sure one is able to appraise the development for the actual costs plus margins so the bank will distribute final payments.