The fact that after rehab, you're targeting $20k of "rehab profit" is skinny....there are closing costs, financing costs, etc that eat into that margin. 100% financing is attractive.

Too skinny, without giving the seller any walking away money. 

To me most of what I have seen on the MLS seems to be very old, not updated and oddly laid out, like row houses that are very tall but insanely skinny with very steep staircases, condos with wallpaper from the 80s and window A/C units, etc. 

Thank you so much for the votes - I am trying to reach the One Thousand mark - it's been fun chatting with you all and being recognized by your votes - I am always willing to help and answer questions.Years ago I got really burned out being an agent and jumping through the hoops as an agent/broker and decided to become an auctioneer, I created an auction company - now doing over 200 transactions a year but the best part of my now exciting real estate life is making fast profits in real estate investing WITHOUT ownership - my family created a formula we call Control and Roll - this is where we control a property (houses or commercial) with a one page contract, what we call a SKINNY contract of sale with special clauses in it - we than offer the property at public auction for all cash, "as is" with NO contingencies and settlement within 30 days. 

Here's the short and skinny, trouble tenants that I want to do cash for keys for but they never signed a lease.

So --------------- here are some tips once you get that license ----hang your license with a small agency - let them know that you are more interested in investing than chasing listings and buyers.attend public auctions (learn that culture) meet the real investors - the ones with talent - money and skills -  let them know that you will refer them FSBO's, you will make offers for them on unlisted properties - that you will supply them with current and more importantly expired listings and bank salesunderstand and learn how to be a "Fiduciary Buyer's Broker" - this is a system of getting paid on unlisted properties - as a buyer's broker you can make offers on their behalf subject to their approval - let them know this is an auto-pilot program that will accelerate they profits in this business. get a written outline of what your new investors are looking to buy - how much cash do they have - how fast can they make a decision on a great deal - do they want to hold or flip - learn how to counsel - take it easy - take time to know and understand your new client - don't rush to try to sell them what is listed - let them know that you represent them - get them to share their goals with you - let them know you are willing to partner with them on some transactions learn creative financing - impress you client with your knowledge of the real estate investment business talk about and explain some of these concepts ----Delayed settlementNothing down transactionHybrid offersShow them what a Skinny Contract offer looks like - compare it with a standard offerStudy contracts - understand commercial - land - lot and business contractsExplain contract clauses that you will use to benefit them - like delayed settlement - substitution of collateral  - right to assign - simple out clauses - seller financing terms and methods - first right of refusal - automatic extension without renegotiating - delaying tactics - right of possession - 1031 exchanges - portfolio combing - joint ventures - tax sale investing - creative foreclosure offerings and how to profit from public auctions.You don't really want to education your clients - but you want to impress on them that you know what your are doing.Once you acquire 3-4 happy clients ask for a up-front retainer for your services - most will be glad to do this since they will see you as a PROFESSIONAL - you  know real estate agents are the only professional that don't get paid until they perform - be different - demand respect - be better than other agents in your community ---- BUT don't be a conventional agents - don't drive suspect around to look at properties - stick with investment properties and learn how to sell high end commercial properties.It took me many years of seminars, books, tapes - school of TRIAL and TERROR to step away from the agency stuff brokers try to stick you with - BE YOUR ONLY PERSON - be a knowledge - honest representative to investors - that's where the money is ------And they will come a time sooner than you think that you will BE YOUR OWN CLIENT!

.* Add in any financing and the deal is too skinny.* Any owner occupant buyer will need to kick out renters (I assume most are not interested in dealing with also the current owner isn't too excited about buying out leases) PROPERTY A B C D E ROOM 4 2 2 2 2 BATH 1.75 1 1.75 1 1 ANNUAL RENT $900.00 $875.00 $1,000.00 $725.00 $725.00 $50,700.00 PROPERTY TAX $155.08 $151.92 $160.42 $138.33 $97.08 $8,434.00 INSURANCE $100.00 $100.00 $100.00 $100.00 $100.00 $6,000.00 ELECTRIC Tenant Tenant Tenant Tenant Tenant $0.00 GARBAGE Tenant Tenant Tenant Tenant Tenant $0.00 WATER Tenant Tenant Tenant Tenant Tenant $0.00 CAPEX $100.00 $100.00 $100.00 $100.00 $100.00 $6,000.00 MAINTENANCE $100.00 $100.00 $100.00 $100.00 $100.00 $6,000.00 MONTHLY CASH FLOW $444.92 $423.08 $539.58 $286.67 $327.92 $24,266.00 TAX ASSESSED $90,000.00 $89,000.00 $98,000.00 $81,000.00 $56,000.00 $414,000.00 BPO $130,000.00 $140,000.00 $145,000.00 $110,000.00 $105,000.00 $630,000.00

the seller pays the buyers agent as well.as an agent you work for your broker for 2 years in most states then you can take the brokers exam and be on your own .. so yes there is a apprenticeship if you will.there are plenty of low cost brokers that only charge a very very nominal fee to hang your license I mean less than 500 a transaction.. just have to google for them.. these cater to investor agents.and an agent is at no disadvantage vis a vi making offers on MLS properties as anyone else.. only thing you put in your offer is a statement staying you are an agent.. that's all that's requiredWhat @Chinmay J. is referring to is you get the hot sheet at 2 in the morning.. now not many brokers or agents I know is going to look at it scan it and send you deals. .you need to do this for yourself.My wife is an agent she does one flip a quarter.. she finds them on MLS ( and not at 2 am either LOL) last one she did she made a little over 125k cash in her skinny jeans.. right off of MLS.. now there was multiple offers and she is very ex[pericned at this and usually will land the deals.And even if you don't get your deals on MLS if your in the flipping to retail bizz your going to sell your home on MLS.. so being an agent to list your own deals is critical in my mind and anyone who does not control their own listings and sales side as a flipper builder is really just giving money away and not in control.now that's in the state I live in.. in other states I hire brokers..

But remember make NO offer until you know you can control a property well below retail.Making offers - we use what we call a "skinny contract offer" this is a one page document that has every clause necessary to CONTROL the building and assign it in a short period of time for all cash.Understand the concept of CONTROL - you don't have to BUY real estate to make lots of cash flow - control with special clauses that gives you the right to assign or walk from the deal if unsuccessful in your assignment search.Always make full disclosures - disclose what you want and what you are going to do - the seller needs to be on board with any proposal or offer you make to be able to get them and you to the settlement table.

Alecia,  this business is great - but there are lots of moving parts - I can think of several ways to deal with this transaction.You may want to control the property with a skinny contract of sale subject to a public auction.Call me if you need some ideas or questions answered.Charles