I found that a thinner margin for a rock solid house makes better long term financial sense and has a much lower hassle factor.

Profit Margin (will I make enough money)2.

In Memphis there are a handful of players, most of whom are on BP who all know what they are doing but their required margins vary a lot.

@Chad McIver You gains are not "capital gains" rather they will be treated as ordinary income, meaning they will be taxed at your marginal tax rate.The tax law basically states that if you purchase an investment with the intent to hold either for cash flow or appreciation, then profits on sale will be treated as capital gains and taxed at the capital gains rate.But since you are flipping a house, you did not intend to hold it, and will therefore be treated as inventory and taxed at your marginal rate.Also, as far as I know, you cannot roll over your gains on a house you did not intend to hold as an investment (i.e. a house you flipped).

There is little margin for investors due to inflated prices.

He bought stuff really jacked up that nobody else wanted from the bank and made great margins because his company could fix it cheap versus a regular investor.

Realistically even if someone were to drop 100k into the house theres still a wide margine for profit.

So I did both with hardly anything in cash.Don't let the lack of capital stop you from building the long-term income, especially if the margin is not great on the straight flip..

It's a lot of work to deal with those issues and if I can't use the property for highest and best use I take a hit and have a marginal property at best.My time is worth a lot of money.

@ J ScottYeah that is a large margin and reason why I am hesitating on it even though it seems like a good deal.