TIAErich  Erich - I would echo other's comments, but also point you in the direction of a Bigger Pocket book, "Estimating Rehab Costs" - It's a 2019 version, so the actual dollar amounts will need to be increased, but it can give you a good starting point for the process that you can refine/update over time. 

Prevent financial loss.

Quote from @Cam Warren: Hey I’m new to the bigger pockets community.

Hi John - Under the passive activity loss (PAL) rules, you can deduct rental losses against passive income. 

Put the profit towards a new Primary residence and ~$50k towards a rental property.2) Rent it out and eat the cash flow loss, hoping rents increase.

I enjoy helping new investors and bigger pockets members find and use loopholes to save money.

Quote from @Jose Remor: Hi all, I'm new and found the bigger pockets after reading "How to Invest in real estate" book from Brandon and Josh.

Non-passive losses can offset non-passive income (like your W2).

My partner however is NOT a real estate professional and won’t be able to capitalize on the deductions as much as I will be able to due to their share of the “loss” being a passive loss.

@Meghan BegueWelcome to Bigger Pockets.