Those are the key figures that have the most margin for error.  

Hey Gabriel, I do a ton in Detroit for my own portfolio as well as other investors.Fix and flip margins are going to be small in most of the locations you're looking at.

It sounds like you have $5-7k/mo worth of cash flow margin to work with even if things decline. 

In Aussie we don't have such a commission structure.There is only a listing/sellers agent commission.Get's paid 2-3% and most homes are $1m+ as Aussie is expensive as F#$@"Buyers agents" exist in Aussie and do "voodoo guru" promo with "Buying below market value" spiels, etc... and charge $10,000 - $15,000 AUD to help source off market deals, etc... and only get hired by investors that are looking for a "hidden" opportunity per se.Might be a good idea picking up some EXP stock or HOUS stock on this news.I'm sure over time they will find another way to charge and make up margin

The fact that cash-flow on a marginal deal can still be ok was already addressed.

You have to do more due diligence, if you buy based on marginal cost of entry/size of unit rather than value you might have a tough time.

Hi Hoa,- Hard money is fast efficient, expensive,  it has high rates and points and shorter term 6-12 months or less typically with extensions available- HELOC typically has no points but prime + 2-3% margin right now is almost the same rate as hard money and closing costs are a lot less than hard money and you can rinse and repeat and reuse it after paying it off so yeah overall its better than HML (hard money lending)Thats just the beginning of your research, the reality is in real life you might need both sources, make sure to have both ready and start with the best execution or option first and always be ready to use the others if the need arises.rehabbing is messy AF especially on older housing Illinois housing stock from 1895-1940's.

The wholesaler asked me to send him what I think the ARV would be IMO and what profit margin I am looking for and then he would go and take a swing at the owner stating he wanted these numbers so he knows where he has to start with in negotiations so he makes his money and I can still profit in the flip. 

So you can see the margin is small ($800) if I was to arbitrage a similar property. 

Every Friday they'll have their hands out, even if there were down days or injuries.Better to let a real Contractor handle this, they'll have multiple jobs and a lot more profit margin to dip into to cover their overhead....you should be handling the overall project decisions and going out and finding the next project, not running a kindergarden (as I used to call it :-)