150/month is a very slim margin and one large expense will wipe out any profit - possibly for many years..... 

I wouldn't loan 50k for a marginally better rate, I'd want equity.

All this allocation is trying to provide a buffer or margin. 

@Alex Deal, to me those numbers look marginal.

Some of these people are savvy in that they’ll pick up homes that would’ve made good flips but were able to pay more cause they aren’t concerned with profit margin and renovate it and instead of selling it, move into it, so it’s not just ready-to-go mls homes being bought up.

Add to that mix new investors, and people trying to make a buck in this covid economy, and investors with "normal" margins are getting squeezed out of the market.  

He was wondering if it isn’t a man made shortage made by the plants and holding back production to cause the price to go up to enjoy good profit margins.

Investors are working under riskier conditions for narrower margins- you'll need to do the same. 

Great profit margin Anthony!

The price is different, except that right now we are seeing larger profit margin potential.