.$70k out of my pocket cash and sell the house when it is done for $360k to $400Kclosing cost $40k so 360 - 40 = 320 - 270 = 50K profit or 400k - 40k = 360k - 270k = 90k profitthe $360k is conservative for sale price chino hill ca.at least that was what i had bouncing in my head

Possibly some questions to ask yourself: How much higher is the cash flow in Akron?

Build up your cash as you build your knowledge and network5.

Quote from @Daniel Tanasa: Another option is to get a small cash out refinance from the house you plan on fixing up, if is in financeable condition, and use that to fix it up, while still cash flowing.

What is your time worth to you?

You are not even scooping your initial investment so your cash on cash return is negative.

This deal doesn't meet the 2% or 50% rule of thumb, but it has positive cash flow and is in a growing market, according to the latest 2024 Top 100 data from BP. 

Is it worth a reduction of an already very small probability of an IRS audit?

You don't provide enough data to know.Every product is only worth what you are willing to pay for it. 

@Roman Balmakov If you are planning on holding the property long term and have enough reserves to cover even worst case scenarios it could still be worth it.