II would love to get into the group see how it work out...  

Financing, as noted is going to be commercial, and FHA won't lend on this size asset, so your numbers might not workout anyways, i.e. 25% down higher interest, shorter amortization, etc.  

If that timing doesn't work out, it often isn't a problem to them to wait for it. 

I set up a website through Carrot with SEO that ranks on the 1st page of google about a year ago but I've only received 1 lead which didn't work out. 

Thankfully, the house survived with no damage.The Current NumbersAt this point, the house has been in a stable state with no vacancy for about 5 months now, and the numbers work out as follows:Rental Income: $1650PITI: $1363Average Repairs: $51Average "Promotional Expense": $25 (I like to treat the guys with some beers every now and then)WiFi and TV: $96 (not entirely sure why I offered to pay for this since we split the other utilities)So it would seem like I'm living for free and netting a little over $100 per month, but we should remember a few things: I went 3 months with vacancy in the 4th room, I'm about to replace the whole HVAC system, and I still pay my split of the utility bill.The Final RecapFor about $19,200 cash down and another $10,000 that I left in the house bank account, I've basically been able to buy myself 8 months of free rent, 9 months of loan paydown, 9 months of appreciation, and a PRICELESS learning experience.

I had frozen pipes in my house and in order to drink my pre workout coffee I had to use water from the toilet. 

Unless you can somehow work out a side deal with the wholesaler, buying from wholesalers with a 203k is tough.  

Has anyone ever come up with a formula to solve when to hire work out?

Do you have cash to close deals if the assignment doesn't work out? 

Inventory is low enough and there are enough house hungry people here that it will sale, but it obviously won't be full ARV.1st Principal: $270K1st Reinstatement: $75K2nd total balance: $97KOther taxes/liens total: $25KARV is $550K - again we won't update it to that level, but $510K-$530K is likely.We won't have significant money costs for the small amount put in (reinstatement + minor repairs/cleanup), and my partner who does hard money loans is a licensed broker so we'll be able to work out the listing commission.So it's not upside down, but margin is too small for most professional rehabbers.