In addition, you would need enough working capital to pay for insurance (which will be going up a LOT in Los Angeles) and to pay for property taxes.Don't buy this unless you have substantial resources and a cash cushion to keep yourself safe.

Make sure you talk with your insurance company on what you would need to faciliate these types of amenities in your rental.

If the permanent financing will allow you to recover most of your initial investment and the fair market rent covers the principal, interest taxes, and insurance with cash left over, you have a BRRRR.

In our market it is important to make sure they are a licensed broker, carry adequate GL and worker's comp (and name you as additional insured).  

I'm also having issue with no onsite manager, but in regards to insurance. 

To calculate Net Profit, we need to deduct: Construction Financing, Investor Capital, Overhead, Insurance, Warranty, Etc.

For example, what is the monthly revenue for the property and what are the "All In" expenses, including mortgage, taxes, insurance, utilities, repairs, etc...

With a private auction of an already foreclosed property, you will usually be allowed as part of the closing to have a title search done and to buy title insurance.

Here in the USA you need what's called a "construction loan" and it's also very hard to find a company that will insure you if you're a newbie.

For this reason, I don't see there being a good pool of tenants or a ton of demand considering the economy is so slow and people who spend time and $ there typically have vacation homes there.The fires certainly have not helped, and I know they have had moratoriums for Home insurance in the region.That being said, for a place to purchase acreage, it still is relatively cheap compared to that of other wine country atmospheres and can have all the same charm.