The HOA is a huge part of what will eat up your profit quick and the range is wild along Navarre and similar areas like Pensacola Beach. 

Yes, hard money costs will eat into your profits, but it’s a way to mitigate some risk on your first deal. 

If Mammoth is anything like Lake arrowhead the management will eat All of your cash flow and then some.  

Hi Jonathon,Lots of things to consider:1: One of the biggest expenses will be water and sewer, if the city provides and the tenant pays it may be worth considering if the numbers are right.  2: Who owns the homes, if you do expect to do a lot of maintenance that will eat into your profit, if they are all tenant owned that's one less thing to have to worry about.3: How are the roads, if they are torn apart this can be a significant one time expense that will need to be addressed sooner rather than later.4: Is there any empty land included or adjacent to the property that can be used to expand in the future.Hope this helps get the ball rolling.Regards,Omar

I totally agree that higher repairs could eat up some or potentially all profits on this.

I can eat the cookie right then and get immediate satisfaction.

I would advise setting up an LLC that you and the other guy own 50/50 and set up an operating agreement that spells everything out, including what happens if the property sells for a loss (does the other guy have to cough up money, or are you eating the loss).

It's best to get it sold before this added expense eats into your profits, but even after the tax sale, you can buy it and pay the taxes.Best of luck!

And you're absolutely right, those major capex can really eat up all that prior cash flow.  

It will eat up some of your profit but since your margins are so much higher, ask yourself if it's worth knowing the deal will close.