These experiences highlighted the need for thorough inspections and budgeting for contingencies when tackling older properties.

@Apryl Skahill To get your risk-averse spouse on board with real estate investing, start by educating him with beginner-friendly resources that highlight the long-term stability, cash flow potential, and tax benefits of real estate, such as depreciation deductions and offsetting W-2 income.

If you happen to invest in the areas I highlighted above would love to connect offline.

The Sampling Method is typically used for properties with nearly identical blueprints such as fast food chains or nursing facilities.EXPERIENCE OR “RULE OF THUMB” APPROACHThis approach is based upon the specialist’s experience in the industry and their ability to estimate the costs.

Here are the numbers:IncomeTotalPartner ContributionsManaging Partners Debt$0.00Partners Deposits$987,459.99Total Contributions$987,459.99Operating IncomeAirbnb Income$50,186.50Square Income (Vehicles or add-ons)$6,741.04Total Operating Income$56,927.54Total Income$1,044,387.53ExpensesPurchase of propertyCost of House-680,000.00Closing Costs-$26,744.44Total Cost of Purchase-706,744.44Set Up ExpensesHouse Improvements & Care taker home addition-116017.03Adding Tiny House-52130.83Furnishings-68403.65Vehicles-43150Set Up Costs and Advertising-2339.53Total Cost of Set Up-282,041.04Operating expensesCare Takers-14535.9Additional Cleaners-1505Cleaning Supplies-2670House Supplies-1340Landscaping-4230.66Utilities (Power & Water)-8204Internet-315Pest control/fumigacion -120Pool cleaning/maintenance-2220Vehicle Gas-552.3Vehicle Maintenance and Repairs-6625.01Welcome Food for Guests-115Property Repairs-4999.64Bank Fees-1208.06Accounting Fees-1085Insurance-955.74Other Expenses-1071.2Total Operating Costs -$51,752.51Total Expenses-$1,040,537.99Net Income$3,849.54Net Operating Income$5,175.03Now 5k for an investment of 970k is not a good investment.  

Those highlight reels rarely show the hiccups, and from what I read in Forbes recently, a lot of seemingly ‘perfect’ deals are just good editing and timing.Before jumping in, I’d think about whether the deal has amoung enough cushion and what your backup plan is if the project drags on.

Grocers must eat the loss of their fresh vegetable or frozen foods during a power outage.

Why can't I go into whole foods and steal their food without getting the police called on me?

This provided a substantial return on the initial investment and freed up capital for future projects.Financial Highlights•Acquisition Price: $72,000•Renovation Costs: $35,600•Total Investment: $107,600•Funds: raised from personal savings and private lender•Appraised Value: $160,700•Monthly Rent: $2,150•Cash-Out Refinance: $3,200 after paying off private lender and myself•Rate and Term Refinance: 30 yr amortization, 7.25% interest, 70% LTV•DSCR: 1.45%Here's the breakdown of rental income and expense analysis:1.Annual Gross Income: $25,800 (Monthly rent of $2,150 x 12)2.Annual Expenses: $25,800 * 0.40 = $10,3203.Annual NOI: $25,800 - $10,320 = $15,4804.Annual Debt Service: $10,680 (Calculated previously using a mortgage calculator with a loan of $131,775, 7.25% interest, and a 30-year term)5.DSCR: $15,480 / $10,680 = 1.45 (approximately)With a 40% expense ratio, the DSCR is approximately 1.45.

While others above have highlighted the ability to purchase a property with 0% down, there is one large stipulation: you must purchase a property as a primary residence.