@James Maaba congrats on your recent long term rental purchase, East Stroudsburg is in high demand!

When I was stationed in Northern VA, high costs had me stuck until I sold my Corvette to meet my DTI ratio and get a condo using my VA Jumbo LOan—one of my best investments.

It’s slow and fees are high.

I have my eyes set on a plot of land near my home where there is high income and significant traffic in a rapidly growing area in Cedar Park, Texas (north of Austin). 

And that's not enough and the risk is too high at that margin for starter homes.

Quote from @Ava Petruso: New to investing but been in the real estate game for 8 years as a high volume realtor.

Price of entry is high, rent is super low. 

However:Strategic Tax Planning: Work with a CPA who specializes in real estate to maximize deductions like depreciation, interest, and operating costs.Higher Rents for Premium Properties: Some investors offset the tax by focusing on properties in high-demand areas (downtown Greenville or near universities, for example) where they can charge a premium rent.Short-Term Rentals (STRs): Consider STRs like Airbnb, where higher nightly rates can make the numbers work better than long-term rentals.

Look for properties with outdated kitchens or bathrooms, as these updates often yield high returns.

The rehab estimate seems very low and the ARV seems really high in my opinion, just based on a tiny bit of research looking at what this property was listed for recently (it hasn’t sold), and what the surrounding similar properties are worth (~$250k).