To cover all costs outside piti?  

Today it has good cash flow (~$6k/month using 49% expense ratio) and is up ~$1m above costs.  

Extra 4 months of carrying costs are up most of the margin.

If rents don't increase faster than inflation, you won't have sufficient funds to cope with rising costs.

If it discharges 5 foot from the building and there is a low spot running back to the building, then it is going down hill back to the building.

It appraised for 320k which is obviously a great spread but you have to remember closing costs, carrying costs, hard money costs and the cost of the refinance.

The total cost including construction and permits (but excluding the land) comes to about $2.14 million.

Items such as this that could be easily replaced by almost any LL at a very minimal cost, will turn into a $135 aggravation at best if you overlook it!

Those holding cost will certainly add up over time and kill any cash flow.

I have had investors pull equity from their homes in the phoenix area to buy cash flowing properties in Fayetteville and similar areas, because the price growth in the phoenix area generates amazing returns.It depends on if you want cashflow now or delayed gratification later.Keep in mind that when you do sell, there are costs to selling and depreciation recapture  and IRS taxes, which eat up most of your "equity" growth.