I have no problem with your numbers.My question is, since you have some cash on hand, why wouldn't you leverage that on a property in an area with better margins and opportunities?

I don't want to make them want to leave, but I'd like to keep my margin about the same.2.

What profit margin are you looking for, it is reasonable for your market?

While our houses do not had huge margins, or meet the 1%, 2%, or 50% rules.

PM is a tough business, snall margins, and you really need to have a solid system, process, and peopel to make it work.  

I've heard of some rehabbers slicing their margins down to 15-20% in certain markets here in the U.S.  

what I have always done with my guys is create very long term relationships with them so that I can ease the skin in the game for them and thus I get velocity and my money is out and stays out and my returns are substantially higher than most HML with a very nice safety margin...

Expenses are repairs (not improvements), tax, insurance, interest, etc. you cannot just subtract your mortgage as principle is an income.So quick and dirtyRent- repairs (not improvements) - improvement on depreciation schedule- insurance- tax- interest-depreciation (house only/27.5) it is common if your rent does not have a much greater margin.

We have done very well out of states buying class A property, with lower returns but keeping the margins very tight.

We buy class A properties, they have lower margins but are easier for us to keep low vacancies low expenses and no management fees.