Its balance, one needs the other to make progress.

Deconstruct the financials to what you think they will look like for you, figure out what you believe to be a reasonable return on your equity and time, then use the balance to calculate what you can afford to pay the Seller.  

How have others in similar situations managed to balance such constraints?

Thanks.Hi Wendy,Balancing the need for significant repairs with financial constraints is tough, especially in the current real estate and economic climate.

I know that there is a lot of unpack here, but it seems a shame to have to pay property taxes on the higher value when Dad will still be the main resident for the balance of his life.  

Original Purchase Price$305,000Down Payment$28,793Closing Costs$11,527Rehab Costs$80,500Mortgage Costs$30,056Utilities$1,275Taxes$2,729Insurance$1,251STR Furnishing$10,142Total Costs$125,953LTR Income$7,000Net STR Income$21,234Total Income$28,234Total Capital Invested$109,246Appraised Value$540,000Loan LTV%70%Loan Amount$378,000Mortgage Balance$325,148Closing Costs$9,805Cash out$43,047Net Capital Invested$66,199Starting Equity$133,207Value Created: $67,008Hours Worked: 595Hourly Wage: $113I was only able to refi at 70% LTV, so I left $66k in the deal.

Some have good earnings growth, pay consistent dividends, and have very healthy balance sheets.

The balance on the Loan is 40k.

So it's definitely a balancing act.

Just need PnL (Profit and Loss) and B/S sheet (Balance Sheet) right?