Low income rentals require more hands-on management, but they also have better profit margins.

I have considered margin loan, but frankly the interest rate doesn't make it all that attractive long term.

I also think the fact that you have clarity on what you are after here increases the likelihood of success by a substantial margin. 

Majority of the auction properties here in my area are bought by the bank.The few that sell to investors are at high prices with very little profit margin.

Given I make about twice as much on my rentals as I do my W-2, and along with substantial tax deferred gains on stocks I pay a surprising small amount of tax on my total income even thought my I pay at a pretty high marginal rate on my last dollar of W-2 wages earned.

I would say average margins are in the teens and so you need to flip about a home a month before it makes sense.

I want to roughly factor in a 60% margin after factoring in expenses so even if expenses are under I’ll pull out the additional for any potential cap ex down the road.They said they’d provide a full year rent roll and financials breakdown after contract is accepted but the gave me June.What do you think of these numbers?

If the house needs work, or even if the systems are aging, I add this to my initial purchase price for the calculation, plus a contractor's price margin for the hassle involved. 

So my PITI on this after the first year will be around $2,000/mowater-$215/moCapex/Rep- it should be like a new house at the end, so I'm only factoring 5%/mo-$225Vacancy-$0, I've got six other properties in the neighborhood... no vacancy with college kidsMisc-$200Estimated Cashflow/mo- $186021% CoC ReturnMy question is this...... my original plan was to utilize the friendly financing terms at a 4% int rt-- better than my recent bank loans by a good margin....I was going to use the full 5 year term, and fix it up slowly over time... get the good unit rented out for max value, and get other unit updated to do the same..... then work on the big ticket items throughout the course of the term...... but then I got to thinking..... interest rates aren't getting any lower.... with the market hot... the ARV and appraisals will likely be friendlier the faster I do it.... it seems a downturn is due well within that 5 year term.

For the average flipper this deal probably wouldn't command a high enough profit margin to justify the work involved, but if your goal is to buy-and-hold, this could be a real winner.