After reading further it seems 50% rule equates to 2% in order to cash flow and around 1% to break even.

If the sponsor does not have the experience to manage the property and deal with being a landlord then we will have an issue no matter how strong the property is today.  3) Credit: It goes without saying that your personal credit is part of the equation and your personal guarantee is important.  

That's why I think it's important for us all to keep learning more on that part of the equation. 

Mike,I’m not sure how you vetted in hiring this PM other than their reviews, which is only one component of the equation.

Rates and terms are for the most part the simplest part to the equation. 

However, sometimes, if the offer includes a lump sum that would allow them to get out from under the ashes and go somewhere else to start anew, they take that life raft....and since they are out of time, they don't have many other options.My suggestion in approaching Sellers in pre-foreclosure is to contact them with a deal that will give them a lump sum that equates to about 3-4 months of living expenses in a decent apartment. 

Vacancy has to be part of the equation as well.

Investors are definitely going to be drawn to someone that understands that cashflow is far more than a rent-mortgage equation too, so education from places like BP is great.Network is huge as an investor friendly agent.

All costs must be factored into the equation here. 

The problem is folks have no intent on closing the deals they tie up in contract...so it equates to unlicensed activity...advertising is another issue...99% of wholesalers here are not doing this correctly, but some are.