Certainly the hot potato is leaving a gaping hole in our evaluation!

This gives you the percentage return on your investment.Consider Additional Factors: Evaluate other factors such as potential appreciation, tax benefits (e.g., depreciation deductions), location desirability, market trends, and potential for future rental rate increases.By following these steps and considering all relevant factors, you can make informed decisions when analyzing the profitability of a rental property.

We've got to raise it, but we don't want alot of moveouts all at once, have to make a lot of repairs to rent given some of the capital demands we've just had (more surprises), so we're going to evaluate the properties and to check on those factors.

In Wichita, Kansas, the typical property price ranges from $180,000 to $220,000, so there's a strong possibility you'll locate properties that fit the plan, particularly if you can buy distressed properties for less than market value.Rent-to-Price Ratio: To evaluate the possible cash flow from rental properties, analyze the rent-to-price ratio in your market.

Market circumstances might change, even if your intention is to flip the property, so think about your choices in case your initial plan doesn't work out.Market Analysis: To verify your predictions on future appreciation, growth in the rental market, or the effect of renovations on property value, do a comprehensive analysis of the market.Time frame: Evaluate the opportunity cost of having your cash invested in a non-performing asset and be realistic about how long you're willing to wait for the property to turn a profit.Investing in a property with negative cash flow can be a calculated risk under the right circumstances, but it requires a higher level of due diligence, market insight, and financial planning.

Making judgments and gaining important insights from experts with experience in your target market may be achieved through networking.You may confidently evaluate your possible investment and choose the best course of action for your financial objectives by carrying out extensive due diligence and making use of the information and tools at your disposal.

I would prefer to do the upgrades so that it gives the property a permanent higher monthly income and hence higher evaluation if I choose to sell. 

Evaluate whether the potential benefits outweigh the higher costs and risks associated with hard money loans.

Thoughts please.Hey Eric,First, I would start by making sure you understand how to evaluate/analyze buy-and-hold deals.  

Like you said, I will devote more emphasis on evaluating deals, making more competitive offers, and doing my due diligence when sourcing a contractor that can parallel my goals.