ABL, a derivative of ABB (always be buying) :D@Theresa Harris If she moves, I would prefer to keep as a rental for exactly the reason you stated.

And that outline is derived from the data we enter on a form.  

One approach would be to calculate a pro-forma value using an annual net operating income (NOI) derived from the rent you would expect your business would have to pay for the finished post-conversion space.

Funds derived from wholesaling can then be redirected toward long term buy and hold properties to boost your cashflow.🤝 Partnerships: Partnering with other investors can be an effective way to buy deals without your own capital.

Maybe for an apartment syndication or $100M development, but buying one-off turnkey rentals is an asset class that is notoriously difficult to derive profit from and impossible to scale (scaling will just magnify your losses here anyway).

However, the 50% rule used by many here on BPis a quick calculation estimate to derive at a "total costs" approach, not just operating expenses.

Here is the Fannie Mae guideline on this:Verification of Secondary Employment IncomeSecondary employment income is income that is derived from a second job or multiple jobs the borrower may have.

This process isn't that hard, especially on a light/cosmetic rehab:For a light rehab you need to put together a list of repairs and then price each repair:FlooringPaintingLight FixturesPlumbing FixturesLandscapingEtc, etc, etc.Once you put together and price this list, you will have a Total Estimate that will likely be far more accurate than some arbitrary $ per SF value.As you get more project experience, you can look back at your cost history and be able derive your OWN $ Per SF values to quickly estimate costs.

I believe all of this is paid separately from the usual CA personal income tax.I derived some of this information from https://www.ftb.ca.gov/file/wh....Also, for your previous question> Do you have any contacts for Lawers / Attorneys that can help me register foreign real estate LLC in CA ?

I don't know Heather...Tim Mai was the first person I ever heard about doing flex options (the derivatives market for RE).I learned a ton from that guy...And he had some pretty nice spreadsheet lists that got me off to a good start..Like every hotdog or slice of bacon (no matter how bad it may be) there's a little nutrition in every little piece...Renae, shoot me an email.