And sometimes, we are not materially improving what you could have done  yourself. 

There is no such absolute rule or mandate for REI - it is up to you on your comfort level with your cash flow versus total investment versus appreciation potential.If I followed that rule, I would have missed out on a LOT of great opportunities over the years.We bought a house in Jones Valley in 2017 with negative cash flow - why? 

Net Sale - Is the contract price, minus the closing costs and commissions.Adjust cost basis - Is the purchase price, plus capital improvements, minus depreciation.

You should only be liable for tax on any appreciation since you inherited the rental (minus the cost of your improvements). 

I’m going with him he has been doing this for many many years and trained some of these that are now mostly selling their courses versus actually doing deals. 

You would then stress to not incur any improvement cost above $22,000 or you may have to liquidate the property.In this scenariod, $60,000 if you are making an above return at 10% to 12% annually + $30,000 making $4% in a HYSA, the average return is maybe around 8%The blended return would be about 9%You may be better off investing in the stock market, get a slightly lower return but without all the added stress / work.

The cash flow does improve with the hold .  

I feel like my "circle of people" really needs an expansion and improvement and I want someone with more experience in the field I want to be in to really help me gain myself to success!

That will have a much larger impact on your outcome versus the debt product. 

What I'm aiming for are turnkey rentals and trying to max out the amount of conventional, lower interest loans. again, the DTI income ratio will be IMPROVED if the property shows cash flow.