Partner Driven was drawn to the N 31st deal in Philadelphia, PA, due to its quick turnaround potential and strong profit margin.

Plus with a 50k budget, you won't have much margin for error on the rehab, which one definitely needs for the first rehab.

The marginal increase in revenue going from 1 to 2 and 2 to 3 is, well, marginal. 

I understand this concern, especially if margins are tight.

So what's the value add aspect, where do you pick up margins?

But the margins are still there if you're willing to price these right. 

If this is a property you are renting add up all of your expenses and figure out what will the margin need to be worth the booking.

I know some folks have slim margins, but... $15 a door?

Larger deals tend to trade in retail at higher cap rates.What you need to decide is how long you want your money tied up into a deal (their exit strategy), and how much you want to place, and if you get cash flow right away, partial, or none until certain metrics are hit.As an example you might get 8% preferred return but upside might be more marginal than a small retail turn around deal where exit is in 2 to 3 years and equity multiple is likely much higher for overall return.

Average profit margin is probably around 10-15% before taxes.