(In Texas you need AC. ) We had a house we just redone for a rental and it was an older house with no pre-existing ductwork.

You also owe transfer taxes which vary by state and county.I am not a CPA I am not an attorney this is not tax advice.Thanks for your reply Caroline.I'm not asking because I think it will protect anonymity -- we're not incorporating in WY or DW. 

A key component to cash flow will be loan terms..you could consider trying to incorporate a seller concession towards an interest rate buy down or costs to help improve cash on cash returns.

DSCR loans typically require 15-30% down.2. if a property is severely distressed it may not be rentable, and won't qualify for financing.3. some DSCR loans have pre-payment penalties, and so that would be silly.make sense?

For example, if you are casually chatting, you might find that the seller is trying to get together money to pay for their daughter's wedding in October.

The loan can be structured with no pre-payment penalties so your not tied in for a handful of years.  

Are you trying to convert a pre-existing room into a bedroom to increase the ARV?

They're managed by a property manager and bring in about $3k per month in cash flow after fees.With a household income of around $600k (pre-tax) and $100k available for investment, I'm aiming to find investment strategies that prioritize cash flow over property appreciation.

This will help you gain experience without taking on too much risk.Get Pre-Approved: If you plan to finance your first investment, get pre-approved for a mortgage.

You could always pay off the line of credit without any pre-payment penalties.