Margin call?

The margins have gotten thinner but I'm still finding them.

If you owed taxes at income, and you are highest marginal rate, that is $3,500/yr tax bill.  

In kicking the tax can down further, if the owner ends up retiring from their W2 and is only receiving rental income from their depreciating (on-paper) properties, hopefully their marginal tax bracket is much lower and therefore, by having accelerated depreciation earlier on at a higher tax bracket, they’ve maximized tax savings.

These were 2 small "Mom & Pop" type shops, so there was still a whole lot of time and effort involved for myself, even with delegating duties, in order to keep the profit margins where they needed to be.

Yes, I am comparing offers from two credit unions.1) 2.375 %=1 yr Treasury Security Rate  0.125 + Margin 2.25 , Closing Costs + other fees =$425 .

Because a dollar earned is always on a margin.

@Tyler Muckelroy DFW is a tough market right now to find the right margins but if you get the right deal the flip and rental side is doing very well.

Anyhow, it seems like an okay deal, but with you being a rookie I'm not sure I'd take on a deal like this given the margin may not be worth the work that will go into it.

With OOS investing, depending on strategy, your returns can be greater than 8-9% if you factor in a long term hold and appreciation on top of your cash flow.Turnkey rentals usually have tight margins, and I don't recommend those to newbie investors.