There is a healthy balance between risk and opportunity.

Even if there was you're still talking a healthy cash flow.If you've already gotten the rehab quoted at $10k and you know that's the cost then you're ahead of the game. 

I'm skeptical here and have yet to confirm with PMs and realtors who know the area but even if I lower the estimated rent to 1500, it still looks pretty healthy. 

If you stick to affordable housing within the range of what is affordable to a median income, buy right with a healthy down payment, you can mitigate that risk.

Obviously I will do my due diligence to ensure tenants are qualified, but I feel that being in a better area would help to sustain good tenants and healthy rental values.

If the house sells anywhere close to list price I should make a healthy profit.

That mixed with heavy competition has driven property values up, and rightly so in my opinion...competition is the key to a healthy (though frustrating) market.Also consider the situation of a cash investor who is just looking for a tax haven for his/her money.

With all the tax write offs including depreciation it is showing a loss despite healthy positive cash flow.The other LLC contains no properties yet.I should also mention my wife and I are in heavily taxed W-2 jobs.I’ve stumbled across a great flip.

I need to chat with someone who can help me understand the implications of these decisions on my financial health. I

I did it for a few reasons, the rent is my highest ($2700/mo) so the savings were healthy.