One tip: focus on areas with year-round demand and check local regulations early—they can make or break a deal. 

So, if you bought  a house for $300k and wanted to sell it 2 years later you would need to sell it for something like $600k to break even and cover that HUGE mortgage interest penalty.

As a licensed contractor, I’ve seen how navigating these details can make or break a project.

@Anca R. and everyone, thanks for the shout out.To simplify the process the best I can, I'll address and break down each concern. 1.

I'll have to say people like it when some break are left exposed- it gives the apartment a character.

Let me break down some advice for each of your questions:1.

One of my close friends in the busines had a similar setup.. her husband was also a contractor, and together they tackled a fixer-upper that ended up netting them a solid profit on their first deal.When you’re hunting for the right property, I’d lean on a realtor who really understands investor math... someone who’ll help you break down potential cash flow or resale value.

If that's the case, I would likely hold the property without pulling money out and break even or cash flow a little.

Even if the new property only breaks even, you have shown an ability to handle the debt of the HELOC very well.

The best deal I can find today is one that you buy cash, invest a rehab and when you pull out 75% of your ARV you leave maybe a small amount of money in the deal and you break even (BEFORE DISCOUNTING FOR VACANCY, REPAIRS, etc) Yes that means you leave like 10-25k in the deal and your payment becomes $3000/m and your rent is $3000 a month or slightly less.This is for my local market and for Class B or higher RE.