If you go to those auctions, most of them get bid up too high, and the margins are too slim.

It seems like a really slim margin for profit.Even if you figure in just 42k for repairs.What will be your exit strategy if the market turns and you can't sell?

Anyone can pull a business license and buy insurance, it doesn’t mean that they are legally working as contractor or “handyman”, with that said, you have legally very slim to no recourse when it comes to court.

I wouldn't touch such a slim deal otherwise.

If deal is slim could be a killer.

(Long story, but my husband & I recently became business owners and financing options are a bit slim with a business that's less than a year old in tow.

The margins are slim.

It's a slim deal because at lower rental rates like you have, expenses eat away at cash flow very quickly.

ARV: CONSERVATIVELY $290K (RICHARDSON TX)REPAIRS: $20K (FOUNDATION $10K  + FOUNDATION RELATED CHIMNEY REPAIR $10K)ESTIMATED HOLDING & CLOSING COSTS $5K-10KPOTENTIAL PROFIT: $20K-25KOWNER'S MORTGAGE BALANCE: $240K (THIS IS THE LOWEST THEY'LL BE ABLE TO TAKE WITOUT RUINING THEIR CREDIT WITH A SHORT SALE)as you can see the margins are a little slim but its hard to find a deal in DFW right now.

A lot of experienced investors are bidding in the auction, which makes the margin very slim; it is easy to over pay.