This home had a slimmer margin than I would have liked but I knew it was in good shape and would be a great rental.

I'm only saying the likelihood of attracting tenants that would take care of your place is slimmer.

If you’re looking at it as just an investment property, your choices are slimmer.

The down side is my cost are higher than my competitors and margins slimmer.

The margins on REO, like the margins on Auction properties are getting slimmer and slimmer.So what's left is marketing for your own deals.

You evaluate the exact same way, you just have to accept slimmer margins.Work backwards starting with the minimum profit you would accept to get to the maximum price you will pay.

Are profit margins slimmer in this area?

If your numbers are right it sounds fine to me, I've done slimmer deals. :)

You get all the benefits - easier tenants, no scalability issues, depreciation benefit x 4 thanks to the financing, and potential of some good appreciation - for only a 1% difference in return.In practice - I'm looking to expand by adding more duplexes. 150000, 1900/rent if I can find it (I've done this once, but pickings are getting a bit slimmer lately).

You see the slimmer spreads people are willing to work with.