Based on comps, you could sell for $275K to $300K, leaving little profit once you factor in holding and closing costs.The conversion to a 4/2 near a university is promising, but the risk lies in unexpected renovation costs or market shifts.

So, your CPA is correct in saying that the insurance proceeds won't be taxable assuming they were used to repair or replace the damaged portion of the property.Cost Segregation Study (CSS): A CSS is a tax planning tool that allows you to accelerate depreciation deductions by identifying and reclassifying certain components of your property as shorter-lived assets.

This is why the agencies don't let you swap out management companies, or engage in unexpected mass-renovations (as opposed to simply renovating on turnovers), without their prior approval.

Risk Assessment: Consider vacancy rates, potential repairs, and unexpected expenses.Once you're comfortable analyzing a few deals, you’ll be in a great spot to pull the trigger on your first property.If you need help with financing or want advice on what options might work for you, feel free to reach out.

To me cashflow is important to cover unexpected expenses but I buy for wealth creation and tax benefit, not to supplement my income.

Hi Sean,Both fix-and-flip and buy-and-hold strategies have their merits, and choosing between them often depends on your goals, risk tolerance, and market conditions.Fix-and-flip can provide quicker returns, but it's highly market-dependent and comes with risks like unexpected renovation costs and market fluctuations.

Maybe join a real estate group like Unexpected Investor and get wisdom from other investors and most importantly like Nathan said take action. 

An engineer sent by a cost segregation firm can find a lot MORE components to bonus-depreciate than you can estimate yourself.

Investors want to see a clear plan with realistic numbers, including contingencies for any unexpected issues.As for structuring the deal, you typically have two main approaches:One option is to offer the investor a fixed interest rate on their capital.

So spending the additional money to convert a property in my area is never worth it.I mention this, because if you goal is higher returns on your investment, I would make sure the financials actually align before you even begin to get to the technical components.