(He came to our annual RETA Gathering and he serves a lot of RETA members.)The ROA fees being charged though are ridiculous and gross margins mean nothing and net leaves little for any such return!

Conversely, the same two-bedroom, one-bath unit could fetch $1600-1700 under a traditional LTR arrangement without furnishing or utilities.Considering the added expenses, the MTR/STR model doesn't seem worth it for me, given the marginal increase in revenue.

They have a great established cash flow, thanks to the city’s rental needs and can go after flipping the houses with the best profit margin.

I'm aware that approach may go against the very idea of flipping (e.g. 70% rule), but at this stage I prefer to be as cautious as possible, even if my margins might be smaller.

Might get a deal done the first year but it will be in no man's land in an unknown state with no appreciation, no boots on the ground and marginal actual returns.

The equity piece for us the most important part of any investment we make, we pass on a lot of deals that are likely to be profitable because they are not profitable enough to have a 'margin of safety'.  

Personally I think the margins are too thin on arbitrage to make sense, but its an inexpensive way to get experience fast!

The rising costs can erode profit margins, make renovations more expensive, and increase holding costs.

Mine was financial.I actually think your deal is just marginally fair for your partner.

If there's no equity/margin for the seller, then it's not going to be easy to have him/her move much on his/her price.