McBride crunched the numbers in a pre-bubble era (2004) for a home purchased at $200,000 by a buyer in the 27 percent marginal tax bracket.

See all the foreclosures I was looking at had no margins.

You can take out money early, but it will be subject to your marginal tax rate and a 10% penalty.

So to make a profit without margins I can only afford to pay 60,000 if I have a rent of 800.

The larger the margin the larger his profit.Thanks so much in advance!

In 2012, marginal tax rates for <$70K income were 15% (married filing jointly).

If I found an amazing property for close to the 2 million then I would consider putting it into one deal.One great deal is better than 2 marginal ones of 800k each etc.Opportunities are everywhere.

Not enough margin for vacancies, maintenance, and capital upgrades.The assumable loan would generally considered to be a plus.

Our margins are often 40% or so and thus borrowing using some canned underwriting criteria doesn't make very much sense.

If they did that a big percentage would not buy and they would lose margins on the front end.