They do this by the Scope of Work with Budget being provided to them. 

Best to invest on this due diligence now than when you own the property and the budget sky rockets if you need to underpin the entire foundation. 

@Gil CanfuBased on my experience working with over 400 investors, investing in a single-family home in Dallas with a $300K budget is a smart move due to the area's strong rental demand and appreciation potential.

After 6 months I have two properties and since day 1 they have been rented.However, making some numbers and organizing the 2025 budget I am not sure what to think about my first step on this journey.The rent covers the mortgages (10 year loan both) however I have to take out of my pocket some % to cover HOA and management fee.

(make sure you are budgeting for maintenance and management if you plan to use it) Rent will increase over time and your property will continue to appreciate in value. 

My budget is up to ~$2M for the property.

Also seems like a lot of MF sells occupied with tenants in place so you just have to comfortable with that and contracting up from and seeing inside after contracting.    1st step is to find a great lender and get pre-approved for a loan so you know what your budget is. 

Creative Freedom: You get to design and transform spaces, which can be personally fulfilling.The Bad: Where Flippers Lose Money⚠️ Underestimating Repair Costs: Surprise structural issues, contractor delays, and material price spikes can kill your budget.⚠️ Market Changes: A hot market today might cool down before you sell, which reduces the profit.⚠️ Financing Challenges: Hard money loans carry high interest rates that nibble into the bottom line.Unrealistic timelines: If you think you're going to be in and out in 60 days, you're sadly mistaken-most flips take longer than expected.Real Talk: Is Fix and Flip Still Worth It?

If the unit is already furnished (or you have a budget to get it ready) and allows STRs, it may change some things.

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)