I am not familiar with LA tax sale law but I would ask who they underwrite on and if they provide indemnity letters. 

If you can sell it for $284,000 ARV and pay off $203,000 mortgage, you have $81,000 equity in the place (that you can keep in the rental, or cash out upon sale (less selling expenses).So, $251/month cash flow ($3010 per year) is now just a 3.7% annual return on your $84,000 equity "invested".

Retail from $4-8k in good condition. 

If you are familiar with Memphis and some of the suburb areas, Germantown is one of the top areas and is mostly a retail market. 

I have been looking for a 2 flat that needs a little work on the west side (Logan square / Humboldt park area), and there are maybe 2 for sale!

We just assume it was good and it bit us on the sale.

I have great loan guy in the Columbus market that does nationwide loans and can do loans for homes low as $20,000 sales price and doesn't add junk fee's or hike up the rates because it's a low sales price.  

So if your end product is 40k  lets break it down.. not a sales pitch or what you want to hear.your turn key company or provider is going to want to make at least 10k.. that's common in the industry.. that leaves 30k to do all this... your contractor putting it all together wants to make 3 to 5k.. so that leaves say 25k to put it all together.to have a sustainable rental.. you need New mechanicals new roof.. sewer scoped and replaced if needed up graded plumbing and electrical.. new paint and flooring.. cabinets and appliances and hot water heater.. this all cost at least 15 to 20k.. leaving you to pay 5k for the asset...

Then either a sale for land or development (another 8 months).

It would also be simple to produce a buyers list coming from our sales department.