But I worry a bit that all the transaction costs (time and money) in finding and buying the house on the front end, and and selling the house on the backend, with accompanying paperwork/legal/etc, would eat up so much margin as to make it difficult to make real money on the rehab itself (i.e. improving a run down property back up to 'market' value).For those doing 1 & 4 (straight flipping or rehabbing and flipping), how do you find properties priced low enough, and sell them high enough, holding down your costs all the while, to make a decent profit?

commercial is very difficult...if you know what you are doingthe risk is better since the return is better!

It's very difficult to find a multis in my area to cash flow well for 20% down.

Price/ Unit $ 52,500 Price/ Sq. ft $ 74.46 Rental Income Scheduled Rental Income 48,000.00 ( per year) Vacancy (0%) 0 Effective Rental Income 48,000.00 Service and Other Income 1,615 Effective Gross Income 49,615.00 Operating Expenses Utilities: 4,320.00 Repair & Maintenance 1,300.00 Turnover Costs/ Cleaning 3,000.00 Taxes 2,568.00 Insurance 1,750.00 Total Operating Expenses 12,938.00 Net Operating Income 36,677.00 Debt Service 22,884.00 Cash Flow 13,793.00 Cash Flow/ Month 1,149.42/mo Cap Rate 9.178% 4 2-bedroom units rent for $550 4 1-bedroom units rent for $450 Can anyone help me figure out if this is a worthwhile deal?

I am not investing yet because right now it is very difficult to find properties that will come even close to cash flow positive.

Either 100% commish with desk fees (after all there is still the hassle of hanging the license and dealing with all those forms, issues, etc).Or,Something like a 70/30 split with teh BROKER taking 30, up to a set CAP.

Also, foreclosures in the Seattle Area are difficult to come by for the following reasons:a) Seattle has a robust economyb) Highly knowledgeable homeowner basec) market flooded with savvy investorsNot to say that distressed properties cannot be located in this region, but you have to do your due diligence; require lots of research.Based on the info you provided, it sounds like you have the necessary funds to cover appraisal fees, order title reports, and cover additional loan fees, however, you just need to find a hard money lender that can fund your project.

Something to consider.Beyond that , it is very difficult to determine the complexity of the project without knowing more about the house and the neighborhood.

But commercial property is pretty attractive - vacancy rate 1-3%, cap rate - 11%.

Ho w difficult is it to make the switch from small time landlord like myself to running larger units?