In my market, the majority of homes I will be looking to purchase and flip will be mid sized homes, under $250,000.  

This is because of strict screening.

How much it cuts into profit depends on the size of your loan & interest rate.  

Even if you are, at that loan size, the lender likely will require a personal guarantee.  

First, they don't get much more in rent than a similar size unit without the bling and second they are crestfallen when the first tenants treat the unit like, well, an average renter will (hello wear and tear)...

The price depends in the size and the the number of floors the stairs will serve.

What size house are you looking for and in what price range.

Essentially, this is a tear down...A custom builder has recently scraped 5 lots of similar size directly across the street that are offered for $100-120k with a minimum build price of $300k+.

@Eric Tsang The interest rate is based on many factors (property type and location, loan size, LTV, FICO, DTI, # of other properties, etc.).

Why buy a prop at a cap rate less than 6 when you can buy muni bonds and get a tax equal yield that is close to 6 and you don't have to do tenant screening, maintainence, etc.