But you are required to file a Schedule E in the US every year showing the total rents you received, the expenses you had against those  rents and your subsequent profit or loss. 

@Derick Jennings House hacking is the easiest way to start and the best way to be profitable with low risk in Colorado @Koren Lavi can help you in the Denver area!

Lender's like to see that you are profiting at least 20-25% above the debt, e.g .a debt service coverage ratio of 1.2 - 1.25.

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

With that I can flex my offer to include profit sharing if needed.  

Oversimplifying it just a bit, the investor profits from:- a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period- the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option- the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investorClear as mud?

Hard money costs do eat into the profit but a good hard money lender will want to make sure you are making a sufficient profit on the deal after holding costs, etc. 

this is a direct relation to lack of inventory.. new construction on many markets is as robust as its ever been.. we have had spectacular years the last 3 years of course during covid was tough with supply chains but my 500k house I am now selling for 700k and my build cost have gone up by maybe 100k.. so record profits for us.. 

I do business with a few  I fund the deals they want to  wholetail so they can double or quadruple their profit compared to an assignment fee. 

We wanted to fix up houses and re-sell them for a small profit.