They redeem and pay you for taxes plus interest plus insurance plus value of repairs and you make a profit.

I've done some wholesaling but I'm considering transitioning into buy and holds.

Most of the "profit", I believe, is made when you initially purchase it.

Your profit and the safety of your money.

I have a degree in Supply Chain Management and do some logistics work for a non-profit in my area when I'm not working in real estate.

Should you stay out of the business because of that lost 3-5% margin, or is the opportunity cost of not doing the deal higher than that lost profit margin?

Taking into consideration a tax hit of about 10% to do this because we are not 59 1/2, but no surrender fees because the funds are older, does this make sense to reallign the use of these funds in a more profitable way?

A well priced unit will get multiple offers its first weekend on the market.Next would probably be a for sale by owner, which if you know what you are doing, can save you the listing agent's commission, and sometimes even both commissions, making it more profitable.

I'd be prepared to spend about 10% of my profit on marketing, some of that would go to materials/mailer costs, and some would go to paying an employee to do the work.Do you have a recommendation or rule of thumb that has worked for you?

I did some analysis/modeling comparing 4 scenarios 1) Continue Renting in CA 2) Cash out Refi and Reinvest in TX3) Sell and Reinvest, pay Capital gain tax4) Sell and Reinvest with 1031 ExchangeOption 2 seems the best from a profit and feasibility perspective.