If the profit margin is tight and $500 makes a difference, see if you can save $$$ elsewhere.Interest rate buydown or seller assist is common place thanks to the jump in interest rates. 

The obvious offset to that is that you can re-fi on the way down in order to maintain margins, I plan on doing that. 

Your margins also need to be better on the deal upfront because you need to have reserves to deal with a 6 month eviction process and you need to do a good job of documenting the evidence.With that said I had a mentor who was smarter than me who said real estate in tier 1 cities is the best store of wealth.

If you stay in this deal will you be missing out on winners or, like many markets now, are the margins so thin that you will have to take a similar risk on the next deal?  

Realtors are motivated to sell properties at the highest possible price to maximize their commissions, while wholesalers aim to buy properties at the lowest possible price to maximize their profit margins.

One last tip I've heard from flippers is to try to find an experienced flipper/investor that is willing to partner up with you on the deal and use their experience to get the hard money so you can get a lower interest rate so that doesn't eat more into your margin.

I'm about 65% levered and my margins are around 30%."

I have only done 2 flips since then because of the margins but never in a million years did I imagine the market inflating as much since then. 

@Justin Rowe My main focus was to find a property with acceptable profit margins, and in a C- or better neighborhood, which at the time was challenging.I ended up buying in the Alta Monte neighborhood.

It seems like your true all in costs are going to be well north of $500,000.00 when factoring in the contribution of land, which is low margins if you believe the home is only worth $600,000.00 once constructed.