Just this week I had a client convert a flip into a rental after it sat on the Oakland market for over a month at a price that would have yielded fairly low profit, and this is someone with a track record of successful flips in years past.So I guess this is neutral-to-good news if you're doing buy-and-hold and finding a way not to compete with the owner occupants bidding based on emotional appeal inspired by a reality TV show, but bad news if you're trying to be the next HGTV rockstar flipper paying MLS prices. 

The formula using .65 is showing the price at which (35%) equity would be taken out, in order for fixers/flippers to pull profit from. 

Even if you can get 1250 your deal is well under 1%And not A very profitable investment for cash flow considering the list price .

If you are realizing profit every month and the tenant is sound then I think the goal is accomplished overall.

With a few inputs we can tell roughly how much we'll be making a month and how much profit we will make.

@Mick Relef - Predecting a downturn makes no profit.

"I want to profit" is not an example of "unforeseen."

Being able to do a lot of stuff yourself is great, but a big part of a flip being profitable is getting it done quick. 

Looking for advice on quick ways to analyze a new area to figure out if it is a potentially profitable area to investage further...mostly for rental properties.We are currently looking at city data for average income, average home prices and then looking up rent average for the bedroom sizes.Anyone else have tips on quick data to review?

@James Derrick the lender is unlikely to lend on a four unit when you are purchasing it for the price of a five unit and you still would need to convert it (and have the money to do so), that is probably the largest stumbling block and it has little to do with the actual profitability of the property.