Factor in the down payment, closing costs, and potential renovations.Cash Flow Analysis: Ensure the rental income from both units will cover your mortgage, taxes, insurance, and maintenance costs, leaving room for profit.

It is very hard to "perfect BRRRR" here with consistency or anywhere for that matter with today's rate and insurance costs.

If they dont pay their car note, their insurance or even just small cell phone bills I know there is a zero chance they will take care of my prop OR pay me.

If you buy a house with a $1,500 mortgage, you also need enough to cover taxes, insurance, and maintenance.

You have this experience on the rehab side, you just need a competent team around you: title company, insurance agent, realtor, etc.

The exterior was painted when we bought it, we refinished the floors, added carpet, new paint inside, refinished the kitchen cabinets, replaced a couple windows and did some minor plumbing work inside (along with getting rid of TONS of junk throughout the inside and outside of the home!)

Purchase price: $55,000 Cash invested: $65,000 Sale price: $140,000 First complete renovation all but reframing--new electrical, HVAC, plumbing, complete bathroom and kitchen demo and remodel.

This home had a HUGE delay that cost us thousands of dollars.The group that put in the underground plumbing dug the plumbing too low, and by the time we caught the mistake, the slab had already been poured and the septic tanks installed.We had to dig up the septic tanks, install a lift station, and reinstall the septic tanks.This all happened during 2 hurricanes, which caused even more delays.Time kills deals.This is why you need to 1) be conservative with your timelines and costs, 2) add contingencies to your budgets, and 3) have a healthy profit margin.

Do they pay for vacation pay, medical insurance, workers comp, payroll taxes, PTO & holidays, ongoing training, trucks & commercial vehicle insurance, liability insurance, admins, marketing, SEO, liability insurance, bonding fees, licensing fees?

We call this a resident benefit package which also includes renters insurance.