Aside 123.94 in cash flow, I would also profit $3,352.71 (10k - 5k - 2147.29) from the down payment.

Typically, you can't resell quickly, so holding costs can potentially eat up any profit you would otherwise make.

Thanks Andy,That sounds like sound advice...More potential trouble than potential profit.

I would still rather have maximum after-tax profit, but paying close to zero is pretty fun!

Lines are nice because you don't need to pay interest on cash sitting around so profitable.

I just felt there were too many investors chasing the available inventory and causing the prices to be driven up to where there wasn't enough profit in my mind to continue pursuing them.

As someone who dabbles in day trading once in awhile, I always set my exit strategy before going into a position, taking gains or losses at predetermined prices without (much) emotion in order to profit or cut my losses early.As a young real estate investor with a full time job, I have been acquiring SFH rentals at 60% to 70% discounts from 2006 highs in the Phoenix market.

For 8 properties I personally would be looking at a minimum of $25K profit for myself if they are lower end properties and more if they are nicer.

I know that PM's are not always that great, but since this property cash flows so great, maybe you could have a PM handle just this property so you still get great profits but reduced headaches?

Of course, Fannie/Freddie/HUD are all just govt entities with no profit motive these days, so they're subject to political currents.