By being the perfect customer, they expect to pay wholesale prices therefore making the margins potentially thinner. 4)MLS buyers and agents can be a royal pain the *** to deal with.

wow, depending upon how much $ you had to put in for rehabbing (to make them rent ready) you're doing very well. 42% gross margin on your 20% down home is fantastic. where else can one get a return on $ like that?

The most common application of investment interest deduction is: of that is margin interest.You should go back and reread what I stated above.

They will have better profit margins than me, but there properties suck.

The seller was firm at 5K more than I felt comfortable buying it at, so before I committed I called one of my strong buyers and had him go by and tell me if he would do it with a $3,000 margin on top of the seller's bottom dollar.

You can make the note an adjustable with the margin increasing in year 5 for example and do what ever you can agree to, have the margin increase annually after year 5 by a half a point.

He bought the property in 2009 for 130K.The rents are based on the existing renter who has been in the property for 5 years and pays $1100/m. the property cash flows about $560/m.The margins don't really excite for a wholesale deal. 

Whats the Margin start at?

The way I look at, is that if I can fully control the deal, I'll see better margins overall.

(ie. 0.01 * 109,000 = 1090 = Rent).If you want to neglect these rules, your deal might be too marginal to make any profits.