After completing the project, estimated pure cash flow will be $915 a month and close to $100,000 in equity.

Or should I purely look at cash flow and call it a day?

The lot itself is also big enough to put an ADU in the back and I have a contractor that says they will charge APX 120 per SQFT and pricing gets better with size so it really got me thinking this home for 500,000 isn't really a good deal though adding a 1200 SQFT Duplex in the back does allow me the ability to house hack it as well while cash flowing about 3,000 pure after everything is all said and done.My numbers are like this:Purchase: 485,000lender fees: 21,500Initial stabilazation: 120,000 gutting job on 1,000 SQFT of permitted and 700SQFT unpermitted space.

Are you looking for pure commercial properties or large multi families (5+ units)?

NO emotions here, strictly math.By pure happenstance, we ran into a different property that seems to make sense financially, but is a little more scary then we thought we were ready for.Local to us, a commercial/residential building is for sale. 4 store fronts street level, 2 apartments upstairs, and 1 large unit upstairs that needs a little rehab to be leased out, as it was occupied on and off by the owners kids for many years.The 4 retail units, and the 2 residentials are all spoken for with good leasing history.

It's value is purely what comparable sales in the area say it is worth.I understand that this might make it sell faster or for a little more than its worth.

At the same time investing purely for appreciation is risky and speculative since you never know what the market will do.

You just can only have one FHA loan at a time and they can only be for owner-occ (or house hacking) properties, not pure rentals.

Calculate how much pure profit you would make selling the property (ie. closing costs when you bought it, closing cost when you sell it, repairs, etc.).

@Frank Jiang agree 100% that while they pitched this as market making and it could have been more of a pure play like you described.