Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

Lots of areas that pencil very well on paper but the quality of renter you will get is going to eat into any profit you may think you are getting.

*Self-manage your property for at least one year to maximize profits and ensure quality guest experiences.Hopefully, this helps in some way.

How do we minimize taxes on the profit we're making on this first home? 

.), it can be profitable.

It keeps everyone on the same page.3) The downside of using a PM who has their own maintenance company is that you might end up with larger bills as it is a profit center for them.

(Is there any “profit” left?) 

Even in the Covid era I've found that contractors are still asking top dollar for overhead and profit, making many projects unfeasible. 

Happy profits!!   

When evaluating potential properties, consider three exit strategies: if you can sell quickly for a profit, hold it as a rental, or take a loss.