Keeping clean records from day one really helps when tax season rolls around.

And, factor in the depreciation and other tax benefits, deductions, home office, vehicle expenses, etc. 

Interest rates or property taxes spike, squeezing your cash flow?

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

Possibly lower returns than projected because of statutorily mandated interest rates following court judgements.

If you are borrowing $150k, rates will not likely drop enough for you to justify a refinance due to lower rates.

This is my first Brrrr I'd start the process to get the appraisal ordered and try to get a tenant in there before closing on the refi, otherwise the lender may lower the max LTV

For example, instead of tax returns and W2s they will check bank statements and the After Repair Value (ARV) to underwrite the loan.

.• Public Records & County Websites:Local county appraisal and tax records can be a goldmine for owner information.