It's been tough trying to find a 12%pa cash-flow property here lately and this a higher return than that.Phoenix has become a little tougher to find a deal with a lot of fat on it, not impossible, but tougher than when I started.

I think that is a red flag that a turnkey provider is making a fat profit.

If I did my calculations correctly, I am looking at a 3% cap rate and a big fat 0 cash on cash return. 

As it sits, $1000/mo on 40K is nice fat 30% cash/cash ($12,000/$40,000), but it's only a 3% cap rate ($12,000/$400,000).

Anytime a buyer can't close on time the only way I continue is with a very short extension and an additional big, fat, non-refundable deposit.

Just like sales where clients think you just list the property and collect a fat check at closing there is a MASSIVE amount more to PM than you might think.

I would want much more fat in the deal at that price.If you can pick it up between $150,000 - $200,000, that would justify the risk IMOThere are opportunities in the Midwest where you can make $20,000 - $30,000 on wholesale deals in the $70,000 - $100,000 range.Thanks and have a great day.

I have been using 10%, 14%, and 8% and didnd think they had THAT much fat in them.

As far as HOA fees vs paying for repairs, thats a big fat it all depends.

Too many times I get calls for a lien search from clients AFTER they have bought an HOA lienat the county auction for example and there's a big fat mortgage on the property.Do your homework, get advice, verify advice, and then do your homework again.