That is a function of Net ROI which is in turn a function of leverage, asset allocation and location, operational aspects and risk tolerance.  

My exit strategy is capital allocation. 

In the year of the sale (i.e. the year the contract is entered into), the seller will owe Section 1250 recapture on full depreciation allowed or allowable and allocated capital gains based on monies received.

For maintenance I allocate 10% to 15% of gross rent depending on age and condition of the property.

What is the process, or form, for doing this with my taxes.Here's my issue, I own my own electrical business and some of the money I used on my flip was allocated for my 4th quarter taxes.

If you've allocated a certain % as investment and if you have separated it and depreciated it and reported the income.

If you plan to be in land-lording and own physical assets, they are not a true substitute.My wife and I have assigned percentages of our capital that can be allocated to either real estate or stocks / bonds.

Kudos to you if you re-allocate yourself. 

The way it's laid out up there now, there's a lot of unused space that could be allocated to the second bedroom.The HVAC contractor was going to stop by today to get the plans for the new furnace and ductwork, but he's delayed until Monday! 

If anyone has good contractor recommendations for Montgomery - please let me know because as a remote investor - that will make or break this deal unless I wholesale.If I rent it out, my costs would be as follows:$455/mo PITI$100/mo property management fees$150/mo allocated to repairs/vacancy (build up over time as major items should be repaired during rehab)That would leave me with $45-$195/mo in cash flow.