If I did my calculations correctly, I am looking at a 3% cap rate and a big fat 0 cash on cash return. 

@Theodore Davis Meet as many people you can in your area and listen to the path they took.

I am looking forward to connecting with everyone I possibly can in the business and growing my company and branding myself. 

As it sits, $1000/mo on 40K is nice fat 30% cash/cash ($12,000/$40,000), but it's only a 3% cap rate ($12,000/$400,000).

I plan on doing as much rehab as I can in my spare time and hiring contractors to help with the rest because I'll also have a full time job.  

Anytime a buyer can't close on time the only way I continue is with a very short extension and an additional big, fat, non-refundable deposit.

Just like sales where clients think you just list the property and collect a fat check at closing there is a MASSIVE amount more to PM than you might think.

I would want much more fat in the deal at that price.If you can pick it up between $150,000 - $200,000, that would justify the risk IMOThere are opportunities in the Midwest where you can make $20,000 - $30,000 on wholesale deals in the $70,000 - $100,000 range.Thanks and have a great day.

I have been using 10%, 14%, and 8% and didnd think they had THAT much fat in them.

As far as HOA fees vs paying for repairs, thats a big fat it all depends.