Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain.

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

Hey Cameron, for experienced investors I can lend up to 100% of the purchase and rehab costs on 1-4 unit properties.

Very few non-owner occupied property policies guarantee full replacement cost - they typically provide replacement cost up to the dwelling limit purchased. 

More like a 101 of taxation: you had a reserve of losses -> it helps when you have profits.And a tax geek addendum:I also do not see a direct link to cost segregation benefits here.

@Jonathan SniderFannie and Freddie do have LLPA's and the lower the down payment, the higher the cost.

He's changing the terms of the agreement, and you can choose to accept it or reject it.I don't think it's fair to pass this cost onto the tenant just because you are unwilling to stand up to the contractor.

I am seeing a trend in CA that ADU construction is more cost effective (per unit) than buying on the market by a long shot.

The CF is only playing catchup to the cost to you of the property. 

If operating costs increase, then customers/tenants will eat the costs in tight markets.