Thin margins on rehab ARV, thin margins on rent, no unit standardization, larger lot sizes that are less tax advantageous, and frankly not enough people doing it to make an exit predictable and easy.

If looking to grow though, I think it's a matter of whether or not you're willing to accept a lower return and work with smaller margins.

Anything over that tends to really cut in our profit margins due to time on the road, fuel costs, and missed opportunities due to the value of our time.

This cuts the margins I was thinking I’d get or requires me to offer lower.Am I missing something?

I have a HELOC lined up that will do 90% LTVThey have a margin of 1.5% on top of prime rate. 

At what margin would you, @Aaron Klatt , and @Jason DiClemente consider this a great deal?

I doubt it'll take a year, I'm thinking more like a month or two considering what I feel is a pretty large margin. 

If you can close on the property, you can try to put out the wholesale deal at a higher margin and if you don't like what the cash buyers can pay you you can just close on it yourself to make more profits.

Beware of low down payment deals with thin margins that have high COC returns.

A trust-deed with a marginal borrower can also be a problem, and the foreclosure solution is more time consuming and costly.