I am also trying my hand at wholesaling in the area as well, although the profit margins seem to be much slimmer than in higher priced markets.

It's that REO is even slimmer inventory than the rest of the market and doesn't get discounted very much in NYC.Let's see if 2016 is any different. 

Prices in Arizona, Florida and Nevada were 60% below peaks reached in 2008.Now, the Pickens is much slimmer.

You are correct that margins are becoming slimmer.

You can find banks that will refinance up to 80 (sometimes 85%) but the terms of those loans are often different, and the premium can make the numbers even slimmer.

My 2 go-to strategies, tax deed investing and foreclosures, both for quick flips, are having slimmer and slimmer profits.

Add on that you want a duplex...many of which will be non-owner occupied and there will often be deferred maintenance that won't pass FHA...and your choices are even slimmer. 

And our margins are slimmer than I would like.

That being said plus the fact that short sales are also becoming increasingly difficult to buy at enough of discount makes for a non-existent market or at the very least slimmer profit margins for the active flipper.

Anything slimmer is tough when there are wild swings in the market values with banks being Dr.