That's a fact and saying "you shouldn't be afriad" does nothing but marginalize her feelings.When she's done talking, ensure that you understand her fears.

If you're dealing in SFRs, that's a lot of extra work and cost when you're working with a small margin like on a SFR.

With me being originally from Columbus county NC, and the rural coastal areas i believe the are there for bigger money investors, im just starting out and my line of credit isnt that big just yet, ive been in touch with realtors in the wilmington area but the homes after inspecting all have major isuues....termites...structural...or title complications....thanks everybody for giveing me this great advice, im not going to give up....Living here in Charlotte I believe the market is a tad bit inflated and everyone has taken a course or two in short sales or foreclosures, now when one comes available everyone jumps on it and it gets inflatted quickly taking the profit margin out...

I have preliminary approval from teh second to take a discount and I am awaiting to hear from the first.Once I get approval in writing from the second I am good to go....because it gives me enough margin in the deal even if the first won't discount.

While the rental income is only marginally different obviously the 50% rule can not be correct for both of these given the huge difference in tax rate.

The comps are @$315,000.00 The house is trashed and needs $40,000.00 in renovations my cost.Once I add in closing costs,carring costs, realtor 6% when I sell itthere is not much left for my profit.What is a fair profit margin.

Margins seem rather tight for this market.

If the deal is marginal or worse a $5K credit will never be enough.I would a notice about the disclosure issues and otherwise make it easy for any future buyer to know there is a defect.

However, and this is really for the newbies out there, your margins were dangerously thin.The rule of thumb, and this is for your protection, is to buy at no more than 65% of the ARV minus the repairs.

When you're massaging the numbers to try and make a deal out of a marginal one, you often end up with problems.