Still, there is a tight rope we straddle, but when we show the paperwork on what is expected, the right direction usually surfaces.

It does occasionally allow you a little extra on a tight flip to work with.

It sounds like you may be getting into a very tight situation.

In Florida where I invest I am seeing double digit appreciation on the low end homes and inventory is very tight.

Could be tall weeds, garbage, woodwork needs painting, razing order, or anything in between.The city doesn't request a penny from me until they re-visit and it's not completed or deadline extended, then I get fined.

(newbies has tight budget here!)

I can use that money to build up a rainy day fund, for when things get tight or when repairs are needed, and if I get a good fund saved up, I can start making extra payments.

NOW, if the #'s were tight, and I felt like we just needed a little bit more than a standard 1 year deal, then I might be willing to look at whether a 2 year deal is worth it, but what I don't want to do is give the seller false hopes and screw the buyer into a house that will not appraise so I can make $4k just to support my crack habit.

While housing markets across the country continue to struggle under the weight of overly tight lending conditions and other challenges, the April IMI indicates that just over 100 individual metros are showing measurable and consistent signs that they are headed in the right direction," said NAHB Chairman Barry Rutenberg.

Our average borrower pays 73% and I suspect your potential buyers wish they could buy at 60% but would pay more.Many forget that it’s not percent you take to the bank, but dollars.A low dollar flip, as you presented in your example, would be extraordinarily risky for all but the few who could control their expenses tightly, knew the area well, had good relations with the building department, a great contractor, etc., etc..