You may be required to make estimated tax payments when the property sells.It depends on what your 2024 total taxes due were and 2025 estimated total taxes / withholding / estimated payments are.If you pay in atleast 90% of the current year tax or 100% / 110%(Depending on 2024 income), you are normally considered good.You may want to consult with an accountant for more clarification.

Cash out: $45,250$6,250 still in the property.... principal and interest $719/monthCash flow estimated at roughly: $250/monthScenario #2: 80% LTV cash out refi at 4.25%... 5/1 ARM mortgage.

Assuming your numbers are accurate, I'm estimating your monthly "rent" or your contribution to the monthly expenses will be about $2,000.

Hey @Beau WollensYour numbers show a massive swing in potential profit, so refining your renovation estimate is critical.

The goal is to give CRE professionals more accurate pre-construction cost estimates and prevent costly surprises.I’d love to hear from the seasoned developers here:How are you currently handling site cost estimation, and what’s missing?

The GC can give you a much closer estimate the more detail you give them.  

Quote from @Joel Bechtel: The property value (minus land) is about $1.4M, and rebuild costs are estimated at $1.6M.

You can read about the differences here: Cost Segregation Study Approaches ExplainedLet’s first start with what the approaches:Detailed Engineering Approach from Actual Cost RecordsDetailed Engineering Cost Estimate ApproachSurvey or Letter ApproachResidual Estimation ApproachSampling or Modeling Approach"Rule of Thumb" ApproachSo which of these approaches is required by the IRS?

It helps estimate ARV, rehab costs, and potential returns and offers funding options.

You may need to replace insulation, sheetrock, or even framing material.The only way I would touch it is to have a contractor give me an estimate for renovation, then lower the price far enough to handle that renovation.