This is more common that you might think.They do not take into consideration the costs borne by the investor associated with the transaction such as: closing costs, carrying costs, finance costs, exit costs, etc.They are trying to hit a homerun on every deal and not leaving enough "meat on the bone" for the next person. 

If investors, you need experience and a strong understanding of how deals should be structured so that you can offer your investors adequate returns to meet their objectives while also having enough meat on the bone to be worth your efforts.

I am having trouble finding distressed properties with enough "meat on the bones" to make enough money on the deal.  

The property had good bones and a solid structure, making it a great candidate for renovations that could increase its value.

The property had good bones and a solid structure, making it a great candidate for renovations that could increase its value.

I have family in construction who have looked at it and feel it has fairly solid bones and I like the location and think it's on the way up.

The bones were there.

I go to Sams and buy a big pack of toilet paper, tissues, paper towels, paper plates and a $50 gift card to the local pizza place with a nice welcome card.

Two - In my due diligence, it looks like the only real option to make this unit legal is a special permit and variance, therefore, causing me to update the whole building with sprinklers, fire alarm, and meeting stretch code (certainly not enough meat on the bone for this route).  

Detroit streets are paved with the bones of bankrupt investors that said "It made sense on paper!"