Make sure to research lenders, get pre-approved, and calculate your potential ROI before bidding. 

. ✌️ (and don’t forget to calculate short term capital gains tax - that’s why I prefer passive income over flipping)

Learn about the Net Operating Income (NOI) and Capitalization Rate (Cap Rate)—these are essential to analyzing the potential profitability of a property.Return on Investment (ROI): There are different ways to calculate ROI in real estate, such as looking at your total return after a sale or assessing your rental income versus initial investment.

I've been an excellent student of calculating repair costs and ARV.

You'll just have to figure out how much utilities normally are for your calculations. 

@David YoungTo turn your paid-off home into a successful investment property, start by formalizing a lease agreement, assessing necessary renovations to maximize rental appeal, and calculating your cash flow after expenses.

Many voucher holders also work and so sometimes they will have a higher amount to spend than someone who doesn’t work because they can pay up to a % of their net income from the HA’s calculations, often 30-40%.

For FHA, I would ask your lender to confirm that they considered the 100 mile rule in calculating DTI.

When we order an appraisal, we are handing in a rehab budget to the appraiser and they will use this to help calculate an ARV which is used in the lending calculation. 

Accurate records of all expenditures are essential to claim deductions and calculate the cost basis for future capital gains taxes, including depreciation recapture.This post does not create a CPA-Client relationship.