@Jacob NevarezRecommend you figure out the property Class you want 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?

You could figure out roughly what range the properties you would be targeting would cost and use your own assumptions to come up with something similar.

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

Personally, if I see a property that went back on the market after being under contract, my first assumption is, 'What did the buyer find wrong with it?'

@Craig Bowman Recommend 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?

A lot of your assumptions are quite optimistic, very little room for the inevitable headwinds. 

If you acquire the property in the middle of November(Assumption of November 15th), you will need to clock in about 2 hours a day.You might be able to log in a lot of the hours as you furnish and rehab the property leaving you with 30-minutes / 1 hour towards each guest check in / check out.It is do-able but obviously, sometimes, the more time the better.

We are operating on the assumption that Lakewood market is pretty matured at this time.All thoughts welcome!

I also assume from your profile that you live either in TX or in AZ, and both of them are community property states which matters.If all of my assumptions are correct, there are no tax consequences.

I know certain things like insurance, etc. can't be deducted.Are there are big missteps I should make sure I'm not making in my assumptions/landmines I shouldn't step on to make sure I can deduct these expenses and receive the right rebates in my tax returns at the end of the year?