Additionally, the permitting and approval process for sprinklers can add up to three months to a project’s timeline.

I’ve had a similar situation before where the initial numbers were tight, but after diving into the rehab, the profit potential shot up especially when you get the right contractors and manage timelines efficiently.That said, flipping is a more involved process.

However, you should also factor in closing costs, depreciation recapture, and any selling expenses, which could adjust your actual taxable gain.A 1031 exchange allows you to defer capital gains tax by reinvesting the full proceeds into another investment property, but it comes with strict timelines (you must identify a replacement property within 45 days and close within 180 days).

Here’s some context: Property 1: >$100k in EquityValue: $325kDebt: $220k @ 2.88% (30-year fixed)Property 2: >$70k in EquityValue: $325kDebt: $252k @ 3.38% (30-year fixed)Extra considerations: - I have $15-20k liquid to use for any of these deals- My current job is relatively stable, but not high-payin- Current properties in TX, living in NY, looking to invest in Mid-West (crazy, I know)- No other debt obligations besides the two mortgagesUltimate goal/timeline: Though a bit ambitious, I’d love to build up the portfolio to 10-20 units in the next two yearsI understand that any/all replies aren't financial advice; all ideas welcome for information purposes. 

Sit down with your contractor and write up a quick timeline. 

I love that goal - what's your timeline for reaching that point in your investing journey? 

The other important items are contract terms (including draw schedule, scope of work and timelines), consistent follow up on progress, & paperwork (estimates and invoices) for change orders - they will undoubtedly come up as no construction project goes precisely as planned or has zero hidden or missed task items that will need to be completed.Time is your enemy on all flip projects so hiring the right contractor who can deliver the services in an efficient manner will often be more beneficial to the flipper than a lower priced contractor and/or a poorer quality contractor.

I'll work with an attorney to assist with drafting that.Q2: Yes, I'll talk to my CPA but we'll most likely hold the property for at least 1 year under the LLC given our timeline to design, permit, build and sell the property, meaning I should avoid short-term capital gains.  

The percentage depends on factors like project complexity, timeline, and contractor availability.

Understand Your Legal ObligationsWhy: Tenants may have the right to withhold rent, repair-and-deduct, or terminate their lease if repairs aren’t made promptly.How:Review local laws for habitability timelines (for example, in California, landlords have 30 days for major repairs).If repairs exceed legal deadlines, consider offering a lease termination option to avoid claims of “constructive eviction.”5.