Here's an example that shows how much profit I would actually make if I purchased a property based on the 70% rule:ARV Repairs Purchase Actual Profit$100,000 $30,000 $40,000 $16,900$250,000 $80,000 $95,000 $54,000$500,000 $100,000 $250,000 $116,200As you can see, the deal would be very thin at the $100k ARV mark and if you incur any overages on your rehab costs, it would be very easy to lose money on the deal.

I remember one finder who finally had the light go on when his guy kept losing deals to another guy and then found out they were old high school chums, and a finder for that guy was losing deals to his guy.

I have one additional comment: If you're in a position to lose leads that easily then I'd revisit the value you offer to clients.

Don't lose a good, paying tenant over silliness! 

While some are losing market share against their competitors for an obvious reason, some are not so obvious.

You would have principal pay down if a loan was involved but would lose in other areas.I think 2/1's and 3/1's are not as coveted for exit as a 3/2 to 4/2 but some investors love the oddball properties.

Gets sued and loses?

The property needs to make sense with going in rents for the purchase price you are paying.Wanting to raise rents is all good and well but do not depend on that to make the property work.I have seen many buyers lose their shirt thinking they will just come in and do these big increases and then the cash will start flowing in.

Pretty easy sale when they are a few weeks from losing the house, especially if there is enough equity to give them a little coin in the deal.

OK, so this is well into the process and the "trustee's sale" (or whatever its called in FL) is set for Jan 20.Yes, if she does nothing she is going to lose this house on Jan 20.