They need to add 25% in order to get the 20% for  Overhead and Profit.

This means it can be very profitable if you buy at the right time, but can be brutal if you buy at a peak.

Profit per door is relevant.

Or use the HELOC to do a flip, use those profits to hopefully pay off or down the HELOC and then purchase a rental.  

If you have a “good tenant” bend over backwards to create the 5 year no hassle highly profitable relationship I spoke about.  

Petersburg area, resulting in highly–profitable investments.If you need professional and courteous property management experts for your multifamily, single family, condominiums or town home, you've found the right company!

When you go to sell, you're subject to tax on the amount of profit between your adjusted basis and sale price, not your purchase vs sale price.Recapture is not repaying the depreciation.

In fact, the most profitable deals I've ever done were in these markets.

What this implies to the typical RE investor is obtaining significant cash flow is a big challenge right now and relying on other RE profit sources (such as a value add and not doing a value subtract) may be a more certain path of generating returns.  

I know that it eats into profits but it is something to consider for at least your first rental.