I will eventually flip it once its cash flowing well and 1031 into something a bit bigger.

Create a realistic pro forma profit and loss statement to determine if this business has the potential to pay any more than you could make working a “no risk” job. 6.

Scaling is fun but the more you add the bigger the risk is.

Indicative price around $1.1M, which would be a loss, with tax around 2% potentially 20k/year.

He didn't have much downside in terms of potential losses, and I could be somewhat passive and protected legally (he owned the building site etc. and took care of liability). 

With larger projects come bigger budgets, and tracking your cash flow becomes essential for profitability.

All Contractors are subject to the lender’s determination that the contractors are qualified and experienced, have all appropriate credentials required by the state, are financially able to perform the duties necessary to complete the renovation work in a timely manner, and agree to indemnify the borrower for all property losses or damages caused by its employees or subcontractors.Multiple Specialized Contractors:Ø Since this is a limited repair/renovation program, no General Contractor is required.

Laws are now passed that prevent you from renting to yourself and claiming all the losses.

I had a cost seg done on one of my homes and trying to get one done on another from this company that rob with bigger pockets had done a set on.Every time I email them it says there email doesn't exist and cannot get a response.

Bigger Pockets is a great place to be, whether you're a seasoned investor or brand new to the REI world.