Quote from @LaShon Evans: Looking to get started this spring with the purchase of my first SFH for a LTR situation. 

This is more than enough to do PML's whether you originate or purchase from a broker is up to you.

@Daniel GrantzRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

A vacant house across the street from one I just purchased was also for sale at 51k.

For an $800k investment purchase, I would expect $200k downpayment, $10k-$15k in closing costs, and 1-3 points at $6k/point.

What the IRS is concerned with is when you are doing a 1031 and want to purchase a property from a related party. 

I use a hard money lender here in Memphis TN that is 12% interest paid 1% monthly, 100% purchase & 100% rehab w/5points up front.

Boy, was I wrong to think the next one would go smoothly.The next item 2 weeks later was for an LG fridge that I only purchased 2 years ago which stopped working.

We purchase a property March 2024.  

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.