How to take, save, display, and organize pictures. 

Investors who invest for capital appreciation find it more profitable to invest in these markets due to the low cap rates.There also may be a higher barrier to enter for investors who are not well capitalized.Gino

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Sold at a profit.

A boiler building will operate less profitably than a furnace building.

But this also lets you bargain by saying "you say it makes money but you have never claimed any profit".If you like it and then you get a lawyer to draft a contract with all the Details, detailed out even more and push for a closing day.Once that is good to go, you make a new business then do a DBA form if you want to keep the existing name for recognition.The buyer does NOT need a representative like Real Estate, it is fairly uncommon for buyers to have one.

So he basically got a house for free, plus 24k profit to keep for himself.

And with more renovations, you will start to get better at ball parking things, but even then you will always uncover items, so make sure you are baking in enough profit, even after conservative renovation budgets to feel confident you won't lose money.

What you may want to consider is bringing in an equity partner to fund a portion of the deal and have you manage it and find a way to allocate the profits to each party. 

Investors  like us have a smaller profit margin.