Even worse "margins" can really do better local.

Achieving Financial Balance:Marketing should be accomplished for 4.2% of normal monthly margin. 1.

If you are buying off of the MLS there is a lot of competition and the deals are just marginal.

If you were to sell on a wrap without a broker, you might be able to squeeze out a profit, but would take some time to realize the margin spread, your interim costs might not get recaptured and this is all dependent on a buyer who performs on their end for some years. 

Listed probates rarely provide the kind of margins that satisfy rehabbers. 

According to @James Wise 's definition, they land somewhere between B - and C - .I've built in a pretty sold margin of safety, and am doing my best to tenant proof the units (I realize this is an oxymoron).  

Consequently, they tend NOT to be very creative but focus on price point, resulting in profit margin compression.

A lot of people reduce their "fee" in more competitive markets where the margins are slimmer.

There is more to it as to when amounts are payable, but that should cover it.Your escrow will be audited each year, reviewed, any overage will be returned to you if the balance becomes more than required, the law allows a small margin, like less than 10% beyond actual costs.  

There should  be a good margin between the cost to produce and market rate.