With relatively slim margins like you are describing, make absolutely sure that you can withstand rate changes that may occur during the term of your bridge loan.

I have more flexibility to bulk up when I have a lot of rehabs going at once and can slim down when I don't. 

And that's slim pickings... median home around here is roughly $300k, so for $180k or less you're probably in one of Sacramento's C or D class neighborhoods with significantly more crime.The whole 1-2% rule is meant for lower priced properties in the midwest where if you can find a $50k property to rent for $1,000 per month it meets the 2% test and could be considered a great investment.

That's a pretty darn small population IMO so you have got some slim pickings...

Remember, with almost any standard residential tenant, your chance of recovering any damages, even if you have a judgement, is slim.

Whenever the market does change there are going to be some people stuck holding the bag especially if their margins are slim. 

The pool of tenants that are able to pay more than $850/month are slim.

I can see it on the low end stuff since this $20K short sale probably had at best $600 going to the buyers brokerage to be split at whatever percentage they do, so that is pretty slim.

Like I say the marketing on the part of listing agents has always been slim.  

The margins are slim to begin with so you need a market where the homes are selling where you can easily double your returns otherwise in my opinion it simply is not worth the time.It also must be in a market where buyers can pay cash since financing can be extreamly difficult to obtaine in many markets on a mobile.