It's just too tight.

Missing a deadline could lead to very grumpy subs and possible work stoppage.

I don’t want to go back on my word, but I don’t want to pay too much, as this property is going to be tight on cashflow as it is.What would you guys do?

The numbers seem a little tight with low rates on vacancy/repairs/capex.

If it doesn't allow to buy there right now, you have several options.1) buy some place else where it makes sense2) sit tight on your money until the market crash (no one can predict until when) 3) switch to another asset classes that can sustain economy fluctuations better

The voucher holders tend to be more motivated than the unsubsidized applicants because Atlanta Housing gives them a deadline and most landlords in town don’t accept the vouchers.  

Yes, cash flow will be tight or neutral when you move out after a year or two.

I agree with @Tom Ott most of those houses are in pretty rough areas you will likely struggle to do well in unless you are local, have thick skin, and are very active/hands-on (i.e. feet on the ground, keeping tight control of the property operations).

Also, I’d be willing to make less on the deal, but am afraid that if I go lower that the spread may be too tight.

I’ve heard these terms over and over and am realizing only now that:(A) neither of us have low enough income for Home Possible and(B) the cash flow margins are tight enough (if possible at all) in Madison.