Julian  its the market establishing risk / reward.. and supply / demandin many parts of the rust belt or mid west there are simply more homes than Butts to put in them.you could bull doze 40,000 sfr's in Detroit proper right now and not create a housing shortage.its the age old adage location location location.

Also a true analysis is looking at the reward & the risk, of getting into the deal and getting out.1) You are going to put down $60-$70k (based on your budget) + any cost of rehab.

Whats left is supposed to be to service your debt and also put something in your pocket as profit - the reward you get for taking a risk.So its easy to work the numbers and see what you need, and you can determine your own profit in the process.

Cash for keys is a form of extortion I do not approve of, if I can not persuade tenants to leave on their own I evict.I do not believe criminals should be rewarded for their crimes. 

I have made improvements to the property and found it to be very rewarding.  

  ( unless builder has cash for vertical which is not common at all)Bank will want first position.. you would have to subordinate  ( not subrigate).. which is about as risky of a thing you can do in this industry  2nd position behind a construction loan... if you choose this route you need good legal council to set up your transaction were you have the right to step in for the builder for cause... this is critical in second position lender docs.So in my mind I bet once you run all the numbers and consider your tax planning you may come to the conclusion that a straight sale and 1031 is best.. given risk reward.. and as hot as Charleston isselling the dirt to a builder is just a matter of putting it on the MLS at a fair price.. if your builder balks at a cash sale.

At the auctions I have attended, there may only be a handful of houses for bid with numerous bidders.

Therefore, I'm asking my bank for a POF for each deal....which could be numerous.  

However, the numerous nights working alone on the house I kept wondering if there was a way to support my family doing something I truly loved.

Same mentorship benefit, but potentially more rewarding, esp if you help grow the business.Could you start your own PM company?