Simply put, we start off with the As Repaired/Completed Value (ARV), then subtract from that number a reasonable profit, the rehab cost (scope of work), which we've gotten good at, a contingency reserve for any "unexpecteds", our cost of capital/carrying costs (interest and costs of the leverage used), and our costs/fees on the buy and sell sides of a flip.

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

Then keep $30,000 in reserves in a hysa for emergencies.

You''ll need more down and additional reserves.

I would consider selling one of the properties, paying off the debt, creating a reserve for your remaining investment, and ensuring you are 100% financially stable before you invest again.

I'm actually hearing that it will be allowed for residential multi family as well, although haven't confirmed that.

While very lucrative - if you don't have enough reserves, it can really break the bank. 

Reserves: Do you have enough cash reserves to handle unexpected costs or delays in refinancing?

I was told by the previous owner that you're moving out by February 1st, can you confirm that?"

That covers the down payment for the purchase, the rehab, and the $18,000 for reserves for the account, and $5,000 for me for each property for the time and work involved.