It may not make sense as a flip, but the numbers work out for me because:it's close to work (DTLA)the neighborhood is very safeIt's easy to rent out rooms (close to Cal State LA, USC health science campus & DTLA)I'm only putting down 5% and the monthly expenses will be very lowIf it appreciates, that'll just be an added bonus.

Or just a bonus assuming I will have to change the carpets yearly anyway..Thanks.

A bonus would be someone in the Greenville area renting to section 8 would be total awesome.

couple things either the investors don't like the area and don't agree with your numbers.. or they don't have confidence in your ability to execute.And or your not paying enough for the capital if you can't pull this off you should offer up a 50 /50 or 70/30 to the money so you at least get a deal.. and start to build your experience bucket.Its one thing I see most that are starting out do that is in my mind a critical error.. they think they should be able to borrow private money and get as cheap as money as possible.. when in fact starting out it should be the opposite ... they should be looking for someone who will take a flyer with them since they have no money or real experience and will mitigate a potential loss with a very big upside.Once you get a few of these under your belt and have track record and maybe a little jingle in your pocket you can go HML route with no partner or your current partners will have enough trust and faith to give you bonus or better returns.those starting out need to get deals done no shop for the cheapest money waste a ton of time on the front end finding the deals and then lose them because they could not get them funded.If you made 10k on this deal and the investor made 40k at least you got something instead of having to make this post that your deal failed.Think about it.Even after 40 years in this business I know my competition for investor dollars is always trying to find cheapest money...

If they are above and beyond the requirements, then include them in your marketing as a bonus feature.

I realized yesterday the house is maybe 300 square feet bigger than I thought -- there is a heated/cooled/insulated upstairs bonus room that just needs drywall, paint, and carpet. 

Hey if its in a nice neighborhood with great resell potential... bonus bonus.Well tell me what you think.

You could also offer them a small bonus so they are your advocate in a weird way.  

The added bonus is that the 1031 can be used to reinvest in any geographical location in the US or US territories.  

Plan for the worst and everything else is just a bonus.