I know its a hard pill to swallow to let someone get away with that.

If purchase plus rehab is 80% of ARV, profit will be slim and best and can easily turn into a loss.That rule of thumb assumes you're using hard money at the rates you mention.

Having said that, the majority of deals I lend on came from MLS originally, but I agree, if you are looking around Wilmington, the pickings are slim right now.

If you are simply earning a bit more than the mortgage and HOA fees then it sounds slim, financially.

Occasionally, you may find a listing with errors on it, which will net you some profit, or you can do some slim margin stuff and hope to make 10k to 15k, which isn't my cup of tea.If you want to find deals, you need to find off market properties and that means finding a reliable wholesaler (which has its own set of challenges) or running your own direct marketing campaigns.

I think risk goes up when you're operating on such slim margins too.

Most homes that size are closer to $200k with slim margins but the light rehab dated ones in otherwise nice neighborhoods are the hidden gems when the price is right.

When people discuss being over leveraged, often they are talking about days of the past, when you could put $0 down or close to it, on investment properties.Today you will normally have at least 20% equity (note I didn't say 20% cash, if you buy right you can use some of the built in equity as part of the 20%) before you make the first payment.Can property fall more than 20%, absolutely, but if your buying in the right property, the chances of that happening are very slim, and even if it did happen, as long as the property cash flows (I'm a buy and hold guy), you should still have positive cash flow to get through the dip in the market.Everyone has their own comfort level with leverage,,if you won't sleep at night unless you own a property outright, then don't buy until you can pay cash.  

It's also a foreclosure so slim chance the listing agent has any actual numbers.Pretty much every home you will see will have heat. 

There is a great demand for RV/Boat/Vehicle parking, but the numbers are slim.