Your profit and the safety of your money.

I have a degree in Supply Chain Management and do some logistics work for a non-profit in my area when I'm not working in real estate.

Can you be ok with making a 27% margin instead of 30%?

@Matt Baker If you can make strong cash flow margins and it's a turn key, i'd consider that a win for sure. 

Taking into consideration a tax hit of about 10% to do this because we are not 59 1/2, but no surrender fees because the funds are older, does this make sense to reallign the use of these funds in a more profitable way?

A well priced unit will get multiple offers its first weekend on the market.Next would probably be a for sale by owner, which if you know what you are doing, can save you the listing agent's commission, and sometimes even both commissions, making it more profitable.

I'd be prepared to spend about 10% of my profit on marketing, some of that would go to materials/mailer costs, and some would go to paying an employee to do the work.Do you have a recommendation or rule of thumb that has worked for you?

Your comps appear to be active listings not what has been sold.The margins are way to thin on this as the Holding costs will be a lot higher than 3k and closing costs probably more than 12k when you factor in taxes etc. throw in a 20% contingency on top of rehab and the deal is making very littleJust my 2 cents on how I would analyze it

I did some analysis/modeling comparing 4 scenarios 1) Continue Renting in CA 2) Cash out Refi and Reinvest in TX3) Sell and Reinvest, pay Capital gain tax4) Sell and Reinvest with 1031 ExchangeOption 2 seems the best from a profit and feasibility perspective.

They gave me $30k each and I gave them 20% of the profits in perpetuity.