A mortgage lender can help determine if refinancing or tapping into equity might allow you to acquire additional properties.Consider a 1031 Exchange: If you're open to selling a current property, a 1031 exchange can defer capital gains taxes while enabling you to upgrade to a larger or more profitable asset.

We determined the ARV, estimated our rehab, decided on our required profit, and then negotiated on the purchase price based on that data.

With that being said, the interest rate is going to be the single biggest determining factor for whether you're barely breaking even, or seeing a decent monthly cash flow.

Although the percentage of the increase is large, the determinative factors are whether the resulting rent is so great as to shock the conscience of a reasonable person and was effected for the purpose of compelling the tenant to vacate."

To properly evaluate the condition and determine the cost of renovations, always have a professional inspection done before making a purchase.4.

You need to feel out your seller and determine if this is someone you want to partner with.

This will give you clarity on the numbers and help you determine how to structure an offer that works for both sides.

Steps to PrepareGet Market Data: Research comparable sales to determine the property’s value.

I also sold 2 properties to one out of state and another from Pakistan and the buyer never walked through but relied on the home inspection to determine scope of work or to complete the deal.    

Understanding your market, what you are offering, and the kind of tenant you can expect to attract and KEEP will help you determine how to screen.