This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

Delays, unforeseen repairs, and underestimating budget up front are all much more dangerous occurrences once a gap lender is involved. 

However, some investors are fine with this strategy if they prefer to minimize their upfront investment and plan to refinance in a few years, especially with potential interest rate cuts from the Fed this year.At the end of the day, it’s all about investing in a growing market, selecting a solid neighborhood, and building a strong team to support you.

You’re definitely on the right track thinking through tenant demand upfront, especially with a lot of similar inventory sitting.For marketing, Zillow is really it.

It may cost 2 million dollars.

I talk to so many people who regret not getting a PM up front because they are having problems or high eviction rates doing it alone.

Cost segregation utilizes the MACRS approach.

Tax Savings with Cost Segregation: With a $2M property, cost segregation allows $316k depreciation in year one instead of $28k.

No management costs?

Can you give a cost breakdown?