@Gladys Villa we chose to buy a fixer-upper in a great neighborhood, live in it for 2 years while renovating, sell with the tax exemption (now up to $500,000 profit tax free), then repeat until our kids needed more stability for schools.

Learned a lot about flipping, but we did have a profit.

This project highlighted our ability to identify and quickly capitalize on profitable opportunities, resulting in a swift and successful sale with excellent returns.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $285,000

Cash invested: $40,000

purchase Price $285k
Renovation Cost $40k (on budget)
Renovation Time: 41 days
ARV...

(These are not in order of how profitable they are, it's just used as a way to separate them for explanation purposes. )The first tier of homes are 1-2 bedroom homes these are homes that are tailored ( or should be) toward couples or small families and can range between 100-250k.

Don't forget transaction costs, seller concessions, vacancy loss if you sell vacant (which you should), capital gains taxes on the profit if there is any, etc. 

Your NOI will be 12x your rent, if you have a PM contract in place that fee will come off and that will be your NOI, Then they will multiply out 12 PITI payments and get your 12 month debt service and subtract the two to get your yearly profit as an investor.

At the end of the year, if I have more than that I take it out to profit.

The labor market is still tight, profits still good, wages tend to lag behind inflation, but will catch up eventually as they always have since the beginning of the USD.

I also volunteer my time as a board member of the RPA (Rental Property Association of Wisconsin), a non-profit REIA and we focus on education, landlord-tenant law and lobbying on behalf of landlords in Madison.Networking is important especially in the beginning, because it gives you confidence to see other people's success when you are getting started.