Purchase price: $655,000 Cash invested: $40,000 Sale price: $770,000 Purchase and hold.

The tax is based on selling price minus purchased price.

Purchase the home with the condition that the tenants have vacated.

Though DSCR gives you a better picture of how the property is projected to perform vs debt service, you can't rely solely on one measure to make a purchase decision. 

You will need to narrow down the zip code or street a little more based on where you decide to purchase, but this gives you a good start.

The larger the purchase price the greater the spread you need between purchase price plus holding costs plus rehab cost and ARV.  40k projected profit on a 600k project is too skinny for me. 

I am considering purchasing in Lower Dimond and any of the directly adjacent neighborhoods.

Quote from @Adedotun Kembi: Quote from @Jeff Roth: Hi Holly from Georgia-You own a rental in Colorado and you are looking to purchase a new primary residence and possibly use the equity in the rental for the downpayment.You have two options I am aware of with the rental to access the equity:1.

With those in mind, would a portfolio purchase get you there quicker, maybe. 

I used a hard money loan to purchase this off market deal.I rehabbed the upper two units within two and a half weeks and have a renter already lined up for one unit.