The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

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.

But as often happens, a certain percentage of my investments “go off the rails”, in other words don’t proceed as planned.  

An additional benefit of a detailed engineering-based Cost Segregation Study is that it can increase potential insurance premium savings as well as provide support for the property tax appeals process.

The amount of downpayment requirement insures buyers having "skin in the game". 

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

And don’t forget about short-term rental insurance—it’s a must for direct bookings since you won’t have the platform’s protections.Lastly, make sure your house rules are super clear and easy to find.

Use 1031 Exchanges to Defer TaxesIf you’re selling a property, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another property.

The seller wanted to purchase another home with the proceeds from the sale of this one.

On property number one, I would cash flow $750 a month after mortgage, taxes, and insurance if I also rent out the unit I live in.