I've had hit and miss pricing that way.

You're really close to hitting the 1% rule as well.Seems like a good property to hold.

As values increase, keep taking more HELOCs - which they can do until something in their lives hits the fan and the owner can't keep up with the payments.

@Tony Castronovo hit it right.

 Given those numbers, assuming they spend an extra $50K on rehab to hit $250K ARV, that's about $15K of extra profit in their pocket for a lot of work and risk. 

The purpose of your first deal is to set yourself up for your second, third, fourth, fifth deal.If your expectation is to hit a home run on your very first at-bat, you might be setting yourself up for disappointment.

Last year I hit a HUGE hurdle that I thought I would never recover from financially.

If they're hostile, hit them with a notice immediately and work the law as quickly as possible. 

So here's a rough number breakdown. purchase $1,500,000Loan Amount 1,300,000Rehab+holding+closing costs $115,000ARV 1,900,000new Loan (20 year, 6.25, 5 year)- $1,560,000Cashout portion- $260,000Cashout- FFFF (friends, family, facebook friends)= 10,000Money in deal = 45,000Rental Side of Things (by month)Current Income- 27,000/m (Proforma is 31,500 since I had to rush rent out)Expenses-  (Utilities, Taxes, 25% Vacancy/Management/CAPEX, insurance, etc)- 12,500/mDebt- 11,400/mNOI- 3100/mSomething like that at leastFor the other questions that may pop up:I self manageI doubled my portfolio in one dealI was my own GC for the projectI still have a full time job in securities tradingI worked 110 weeks for 2 months straightI am burnt outI hit a lot of roadblocks including getting sued, vandalized, robbed, and threatenedI had a lot of physical blackouts and emotional breakdownsMy outlook in general on people is definitely more negative However I am also ready to move onThis post was very much to speak on an experience and tell a story. 

Get your criteria on paper before you do another showing,  put it in the hands of everybody who views  (along with lead disclosure,  WA landlord tenant law,  fair housing poster,  and everything else I cannot remember you are required to give people who are viewing)  and send copies post-haste to anybody you already showed who is still interested.   4)  I don't think it is illegal to change your price after advertising  (clearly it is OK to reduce your price, if nobody is biting)  but if you have already taken applications it would be kinda sleazy to change the price on them,  and if you do, make darn sure you communicate  the same exact price change for EVERYONE who has already viewed or you could be hit with discrimination claims.