If he decided he was taken advantage of and complained to the real estate board, you could be in some hot water as that is an extreme commission.    

@Rod Stanback, I would looking to buy and hold the property.  

For instance if I am selling into a rising market that has been hot for some time I'd rather take that cash and pay tax on it with the thought of using it as capital for some other endeavor or to acquire more real estate later when the market cycles to a buyers market.Anyway, so on to the caveat.

The fixer uppers on MLS in a hot market are asking 90% ARV when they require tons of work.

Cash flow is still king and it will keep a newbie out of hot water if you focus on cash flow.  

We're concerned about the market being too hot, but it'll still be cheaper to own vs rent. 

Hello,The housing market in my local market is pretty hot right now and finding an investment property has been a challenge.

Josh Oaten I think you have already got the professionals in the field given you great advice but here is my two cents , start listening to podcast Lifetime cashflow by Rod Khleif.

About two months later in June, we had a HOT and HUMID few weeks here in Michigan, and in the kitchen I started smelling a musty stench.

Have a cold one and chill out...So what you're saying is that your local market, which I presume you know well, is currently depressed due to storm damage in an otherwise red hot nationwide market.