(I excluded these options because I am currently reading and listening to the BiggerPockets podcast, so I would like alternative options) I am super driven and I have a passion for learning about new things, and this topic is something I would love to pursue as a career.

Budget for 5%-10% CapEx — not based off percentage — calculate how much the item would cost to replace and how long it has until it needs it then do the math — (roof, water heater, appliances, driveway, HVAC, flooring, plumbing, windows, paint, cabinets/counters, structure, components- garage door…, landscaping) Closing costs — around 1.5% property value RehabDetermining Cash FlowJust subtract income- expensesCoCROI (cash on cash return)Total Annual Cash Flow / Total InvestedRule of Thumbs General guidelines and not strictly accurateThe 50% Rule A rental property’s expenses tend to be about 50% of the income, excluding the mortgage P&I CashFlow = (total income x 0.5) - Mortgage P&I Helps just to quickly screen a property for further researchThe 2% Rule The ratio between rental income and purchase price Property’s monthly income must = 2% of the purchase price or greater The percentage varies on the areaCh. 6Investing While living in an Expensive AreaSunday,September 8, 20199:21PMAre you looking for homes on sale?

You should always include management (10-12%) in your underwriting, even if you plan to self-manage at first.I think with you living there, it will probably end up costing you ~$675/month, excluding your utilities.That's pretty solid considering how much you're putting in, the equity you'll build, and experience you'll get.

If so, you can exclude some of the gains. 

This excludes your long-term partner from participating in any appreciation, but you could always choose to gift that, tax-free, up to $14,000 annually.  

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild with the same kind and quality excluding the foundation)2.

The tenant buyers get a $100 discount on monthly rent if they take care of all the maintenance (excluding major things such as a plumbing leak or roof leak).

Net operating income is income - expenses (excluding principal, interest, taxes, and depreciation) = NOI. 

@Vusa Dube “normal wear and tear” is always excluded from damage.

And under payroll, will just average their 2019 monthly x2.5, excluding anything over $100k annualized.