The high sales price eats into the margins in a way that doesn't work for investors. 

This person is eating up your time and sanity.

Food cost, Insurance cost, Drinking cost, eating out cost are all going up.  

Your traditional hard money doesn't eat your profit, they charge you a high rate.3. $150/month in cash flow is not something to hope for.

And, in an ethical fund, the investment sponsor has first loss capital and eats any defaults dollar for dollar. 

Not going to eat any cash flow and put any surplus into the house.I appreciate any thoughts and insights!

If you just want to buy rent ready properties and start collecting rent I would caution that you don't over leverage as you will only increase your cap ex spending all while eating into your cash reserves/equity.

What if someone eats my pizza?

Isn't he in effect training up his competition and potentially eating up into his own future revenues? 

Eating near 5 acres we bought for future development.