Additionally, you’ll need to account for "depreciation recapture"—the depreciation deductions claimed during the rental period must be taxed.For example, consider a property purchased for $310,000, rented for six years, and then converted into a primary residence for two years before being sold for $510,000.

I had a project bite me in the butt because I wasn't more diligent in "checking in" on the contractor.If you need any help or additional advice, feel free to reach out I have helped a lot of my investor friends purchase properties in other counties in California.

Additionally, there may be grant money or other funding programs available to you.Finally, if you get involved with a local real estate group you can likely find other investors that might want to participate in the deal with you.

Just like any flip story, my first flip expenses almost doubled (different story for another day 😊), so we are being cautious with any additional expenses.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Are you listed as additional insured under each contractors insurance policy? 

Additionally, sometimes there are smells left behind that need to be remediated. 

@Alecia Loveless This would be considered an addition to the lease which would still need to be mutually agreed upon. 

If you’re investing in an area with new employers, infrastructure, or young professionals, demand could stay strong even if current listings are stagnant.4.

Your losses even depend on number of things like the basis of your earlier property, any additional capex required like HVAC or major repairs, output of cost segregation studies, etc.