Both are challenging to find the right property and there is a ton of competition from new Mel's listings that appear worth while to look at.

See how many similar places are up for rent which is your competition and the current rents.2) Get the inspection report and do an oil tank sweep and get (3) General Contractors to give you written bids once you write your own clear scope of work for them.3) Then crunch your numbers and your conservative timeline to complete to see if the deal will work based on the Bigger Pocket rulesAnything less; you are gambling and hoping and praying this deal may work and since this Iis your first deal it doesn't usually turn out good.

@J Scott @Karen Margrave As a follow up we don't make anything near these margins in portlandia.. one of the reasons is there in SC the all in building permits are 5 to 7k.. in our market they are 35 to 45k just for permits before you go vertical. and I know other areas are much more.Plus the competition for lots..

If you have the property tied up you can check your local REI Club for who buys fix and flips, as well as who your competition is. 

Is your experience similar to @Grant Kemp where only a very small fraction of the DOS clauses are being called?

You gotta remember that 1-4 units is mainstream stuff, so that means that prices are very competitive due to the sheer volume.

You don't want to go there unless you quit your day job.I think too that getting involved with partnerships, syndications and financing brokers with fractionalized interests isn't a way for a new note investor to go, your due diligence is entirely different aimed at that broker or structure in addition to the note and most, I'm sure, would not pass my muster.

If you’ve never used private money loans to finance your real estate acquisitions these can offer you competitive advantage when used correctly.Posted by Corey Curwick Dutton

I would suggest you look at the pictures in the "for rent" ads for that neighborhood and see what your competition is offering.  

I would make sure that your other policies are competitive.