I have like $500k that needs something to allocate against.  

The primary residence unit does not qualify, so the purchase price must be allocated between investment and personal use.

Specific is how I classify loans toed to a specific property, and generic is how I classify our family loan that is not tied to any specific property, so I have to allocate it myself.

It will also depend on how your asset allocation is, I like to keep mine mixed between real estate and the stock market.

i agree that a new purchase at 75% equity will typically not have significant cash flow and may even be negative when properly allocating for all expenses.Investing to max equity without reserves is risky and you indicate would result in stress.  

Mostly a single ADU added in a single family zone area will add less value than the cost of the hands on addition.Depending on the financing my underwriting with a high LTV (80% LTV) for $200k would be cash neutral at a rent point at about $2200 when allocating for all expenses without including any land value.  

Thanks for the response, Caleb.Not a ton of savings that I could allocate towards a BRRRR.

-Allocate a portion of your funds toward extra payments on the current mortgage while also setting aside money for a new investment.

I allocated $500/month for insurance which is part of why such a promising revenue to cost projects such poor COC.  

Real estate transactions, especially flips, come with specific tax implications such as the potential for dealer classification, short-term capital gains, and cost allocation for renovations, which can significantly impact your tax liability.