Quote from @Adolfo Herrera: I recently bought a piece of land(cash) in my hometown in Texas and I am looking to start building a home to sell.The lot sits in a new neighborhood and is in the more affordable side of the Rio Grande Valley.

With a cash flow of $6,600, an 11% cash-on-cash return, and an 8% cap rate, you’re seeing good profitability.

Plus licensing is crazy expensive.There are issues all over the place here and getting anything to cash flow is a tough row to hoe.

You're netting $5k/mo and have no cash available and you're working a civil engineering job?

Why not just sell it and get a cheap car, pay cash?

So you use hard money or cash, fix it, resell it...and try to resale fast. 

It’s crucial to ensure that your cash reserves can cover not only the mortgage but also unexpected expenses during the remodel.The 30% housing rule is a helpful guideline to avoid overextending yourself, and ideally, you should be comfortable with your monthly housing costs even without rental income.

Good cash flow and equity upon completion.

Hey Brandon,I had good success by getting equity lines on properties to access the cash to invest again. 20% is certainly not essential if you want to go lower there are many lending options for lower down payments, especially if you are willing to house hack!

Purchase price: $450,000 Cash invested: $650,000 Sale price: $1,600,000 New construction of single family