Full stop.An investor can buy undervalued RE, do efficient improvements and create massive value. 

This negative initial cash flow improves quickly.  

I don't expect material improvements until 2026 at the earliest. 

I am in my working years, not relying on rental income, and am focusing mostly on improving my overall net worth (not as focused on living off the cash flow).

That would mean a return of $253*43 - $8735 = $2144, which translates to a yield of 12.49% over that period (plugged those numbers into 10bii) or a CoC of $2,144 / $253*43 = 20% +/- a few basis points to account for cost of capital.By using this system we got about a 2%-3% improvement from the original 10%.

The quality I can improve but once the limbs have hit 1 inch the value is impaired moving from A to B or lower quality.I’ll process logs, rough sawn, kiln dry, planed.  

Out-of-pocket capital improvements and repairs anticipated during the first year12. 

For my short term rentals I am really going to focus on adding improvements that will increase my daily rate and guest experience.

Additionally, smaller properties (2-4 units) tend to have lower cap rates because they qualify for conventional financing, which impacts the math.If you’re struggling with cash flow, finding off-market deals or considering seller financing could be a good way to improve the numbers.

We discovered the previous owner had dementia which explained most of the work we needed to do, Our short-term is improving that unit to rental standard, not necessarily adding property value as he and I are still drawing floor plans for Long term.Thank you!!!