Personally, I also maintain a certain level of leverage for asset protection (ie. get sued-->forced to sell @ 10-15% market discount, 6% agent fees, not much meat left on the bone @ 75-80% LTV)

Maybe try and partner up with someone on this and do a JV, but to be honest, there is not much meat left on the bone with an ARV of 50k 

I'm mostly interested in very run down properties that would require a full gut - as long as the bones are good!

With that, if I do buy B properties, would there be enough meat on the bone for value-add?

Need to move fast, need to find cheaper money and be sure the bones of the house are in good shape before buying!

There needs to be enough meat on the bones of the deal to make sure there’s enough to go around.

His business was grossly mismanaged the building almost went to auction for taxes this month, so I guess the next step is to see if I can get a copy of the returns to a CPA to see if there is any depreciation left, or if he mismanaged those as bad as he did everything else, and left all the meat on the bone.

However, I think you may need to drop your cut to 7,500 or even 5,000 to leave your end buyer more meat on the bone to work with given the low ARV.

Good area, house has good bones, and not much deferred maintenance.

Good area, house has good bones, and not much deferred maintenance.