Make sure your budget accounts for potential unexpected repairs and delays, as these types of properties can sometimes reveal hidden damage during the renovation process.

I'm wondering about any potential regulations that might make this a more difficult process than I'm anticipating. 

A major repair can blow your entire budget.

Ensure you have reserves for vacancies or repairs, properly screen tenants, switch to landlord insurance, and keep detailed records for tax time.

You can always have an accountant review your return for a lower fee (around $200-$300).Biggest thing: Make sure you’re tracking all deductions (mortgage interest, depreciation, repairs, etc.).

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details:After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Starting small with SFHs lets you learn the ropes—finding deals, managing tenants, handling repairs—without jumping into the deep end.

- Do you have reserves or access to capital to make repairs/updates to the property?

We were not able to recover any yard damages due to other damages they had left that needed repair, which empted out their security deposit.

Also some plumbing repairs were needed but nothing major.