Just be cautious of DTI (debt-to-income) ratios when qualifying for additional loans if you’re relying on projected STR income—most lenders require at least 12 months of rental history.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

The advantage if needed by calling it an investment home is that you can use the potential income from the property to help your debt to income ratio where you cannot do this on a second home. 

What’s even better is that I haven’t touched these profit.s Instead, I’ve reinvested it back into the business, paid off business debts, and focused on scaling further.

Do you have much debt currently?

Don't forget to account for the cost of the appraisal or any other vendors...an appraisal and survey will over $1000 combined, for example. 

Combine that with rates that are near high for this century.  3 things could solve this 1) RE prices fall (that would be bad for me) 2) rents increase a lot without RE prices increasing similarly (this would be bad for tenants) 3) rates fall a lot.  

Eventually, the supply of essentially free house and/or suckers runs out, or law enforcement catches on, or some combination of those factors.

That would be a debt service cover ratio of 1.5.

Eliminate debt, establish a budget, and save.