Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

As the options come in you or someone needs to analyze their potential, do a drive by, get in to see it, and then someone would need to estimate the rehab - a quick way to do this yourself is ask three different GCs what their price per square foot is on a full gut and average them out and use that price per square foot for your rehab estimates.But let's say you get a funnel started and even analyzers to pick out the gems among the muck, now you need your contractor to come in and give you his estimate and then you need your financing lined up and get your term sheet based on your offer, the rehab, and what you think the ARV will be. 

My estimates were much higher.

Plan your house hack by running cash flow estimates, checking rental regulations, and planning for FHA or Conventional loans.

You should still buy an owner occupant in your local market always though to use the low money down loans and interest write offs.My local market right now is Seattle haha   I heard Seattle is pretty landlord friendly not a chance.

A DSCR loan is one of them, but with the rent only being $700, chances are you'd need to go with a no ratio program to make the numbers work.

If I could get an estimate on the time and cost for the variance, the next step would be to engage an architect or developer.

For example, you can write something like:"Spoke with GC for 1 hour regarding renovations for STR property, discussed scope of work, timeline, and cost estimates." 

Taxpayers perform more than 750 hours of service in real property trades or businesses in which they materially participate.With you not working a W2 job and likely working on these properties full time, it sounds like you have a good chance to qualify.

One of my clients almost lost his chance at a claim because his originals were destroyed in the storm, but luckily, he had everything backed up.Hang in there, Joe!