I have $10k in profit, and my original $500k back to lend to the next person.Let's say I flip that same $500k 10 times in a year.I just earned $100k on $500k.That's a 20% ROI.In reality there's a lot more going on, various estimates say the net cost to originate a single loan is $4500 to $8500 mostly due to Dodd-Frank and CFPB... probably 0.5% of your interest rate is just that alone.

If this is your first rehab, you may potentially be under-estimating the rehab costs.

You don't go into detail, but I'm assuming the $1,400 rent would apply to the 3-bed house, not the 1-bed guest house, is that correct?

The house looks still in good shape so I estimate $5K for TLC.

In CA I can email title company day of the sherif sale and within two hours I’ll get the clear to close title very or detail title report..... i am finding it very difficult here on the east coast

@Dale Rast if you have not already there is a book published by the NASB that walks you through the details of SDIRA/REI investing.

You want it for at least 20% below market, which is $132,800.You go through with a contractor and he estimates $20,000 in repairs so you pad it a little and say $25,000 to cover some undiscovered issues.You offer the owner $107,800 and tell them this is your bottom line to ensure you can make the necessary repairs and turn a "reasonable profit."

Would you all recommend taking a General Contractor to a potential property and paying him for his time in exchange for him giving a good estimate of the scope of work? 

This estimate included adding ridge and soffit vents, ice guard, and new flashing on four chimneys. 

PP $210kDP $15kRequired roof repair $15kInspection currently taking place this morning so unknown additional repair costsCurrent rents $2345 Owner paid W/S/G & exterior electric $544taxes $2200 /yrInsurance (awaiting accurate quote) estimated $1200/yrSeller financing $195k at 5.85% 5 year balloon amortized over 30 years with monthly payment of $1150.