That’s how the wealthy do it with real estate or businesses.

I assume a higher upfront cost as far as land purchase and the actual build but you would have a brand new house, instant equity and hopefully maintenance free for quite a while.

I assume this income/loss is passed onto your personal return through a K-1 and the business files a 1120? 

In other words, FB marketplace cast offs won't be the best fit unless you're lucky enough to come by some Pottery Barn or West Elm or brands like that. 

The new tenants didn't know how to lite the brand-new stove.

I'm brand new to Bigger Pockets and just recently moved to Los Angeles County.

(Previous rent was $1,300 but we're about to put in a brand new kitchen from the studs, new flooring throughout the house, new furance, adding A/C, etc).So do we just pay for it all upfront and mostly drain all of our savings, or do I let the rent pay for it and utilize our other savings to get a second property this spring/summer to increase our cashflow? 

Also, what if you spend thousands of dollars on a brand-new DADU, only to have the seller reaqcuire the house?

In Phoenix, a 1996 build is practically brand new when compared to a WWI-era home in Cleveland or Pittsburgh or some other Midwest or East coast city.While I agree that older homes come with more problems, buying something newer may not work as the price will be higher and won't cash flow as well.I'm of the mindset to buy what fits your budget and investment goals.

I will take that over 200.00 a month positive cash flow :)  All the while running my Capital Partner business and funding over 120 deals a year for my hand picked clients. lThat's a nice combination.