On the surface it looked good since I could make a spread of 5.5%, but after calculating income taxes it dropped down to <3.85%.

I have only scratched the surface in my research and am open to any suggestions or success stories.

The problem is some houses need lots more work than you find on the surface- and if you're playing in a small profit bubble you can end up at a loss really quickly. 

@Bart Modzelewski yes typically you pay 12%, points, and minimum 10% down for skin in the game.

Private money, unless it is a friend or family, still typically require you to put 'skin in the game' so to speak.

My first thoughts are:-No exposed wood or painted surfaces on the exterior-Coax cable outlets in every bedroom and living area-LVT in the common areas and wet areas-Concrete porch and patio instead of using a wood deck-Upgraded toilets with large flush valves and high quality internals-No bifold closet doors-Basic cabinets and countertops-A step up from Contractor grade for faucets -Solid wood interior steps instead of carpetedWhat am I forgetting?

You really want ur syndicator to "have skin in the game."

Hint: I do NOT recommend you allow them to stay as a TENANT if you buy it.I'm not surprised you can't find a way to assume the loan.On the surface of it, they should refi out of FHA, and you could start your own FHA Application.But then, I'm now guessing you don't even want to live there yourself?

Live from a nondescript bedroom in one of the 64 parishes of the Pelican State, it is I, Ronald, gracing my presence on the BiggerPockets forum.Okay, enough theatrics, here is a little about me: Single, early 30's, no...

(From what I hear that is the minimum skin in the game a commercial lender will do) Again, this puts you into another loan.