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.

I would argue that one derived from the other.

The contents of the section can indicate the quality of the cost segregation study.CertificationThe person who created the analysis, opinions and conclusions of the cost segregation report should sign the report and may include their resume or state credentials.ExhibitsThis may include photographs or videos of the assets as well as the accounting records that were utilized to derive the costs which should tie to the schedule of assets utilized in the study.If you’re going to get a cost segregation study, you want to ensure that the results of the study will be upheld in the event of an audit.

Do a Wikipedia search on "ordinary annuity" and look up the formula...use the PV, interest rates (imputed rate), etc. and figure out what the equivalent offer is for a zero percent (bumped to X% with imputed interest) offer.You may try decreasing your zero percent offer a bit and bumping your interest rate for the annuity up to the IRS's imputed minimum to have the payments the same as they would be at zero percent.This question is difficult to answer without showing you a sheet.You should also look at Ray Alcorn's, "What's It Worth - Deriving YOUR Capitalization Rate" article for an analysis on what your money is worth and WACC calculations.

We have had 10 years of outstanding appreciation, we have a political climate that is anti LL, we have saturation in some of the RE derivatives (STR, furnished 30+ day rentals, etc.).Good luck