Are you financially independent?

If the carrier faces financial trouble, significantly raises premiums, or changes its terms, you could find yourself with fewer options.

It depends on your financial strength, the quality of the property, how many properties you own, etc.I like to start with one significant expense and three months of vacancy.

Do you have a budget and a financial goal Your trying to achieve?

@Joseph BaenaRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Financial predators who realize up front that they are not on the note and have no risk to their credit  rip rents with no intention of fulfilling the contracts and original seller gets wiped out.

The cost basis includes:Purchase Price: The amount you paid for the property.Renovation Costs: Add the cost of improvements and remodels that significantly enhance the property's value.Closing Costs: Certain closing costs related to acquiring the property (like title fees) can be added to the basis.You will then allocate the total cost basis between the land (which isn't depreciable) and the building (which is depreciable over 27.5 years for residential properties).If you're unsure about how to allocate between land and building, you can use the allocation percentage from your property tax records or get an appraisal.This post does not create a CPA-Client relationship.

The likely market rent in this area is as low as $995 and probably no higher than $1195 and a lot of the rent will depend on condition of the property.Pull up public records on the home, and you will see it initially sold in 98 for roughly 50k. 

Start a public records inquiry at the local/county level.

The spread/deal economics - You want to make sure the project makes sense financially.