Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

We also recently got notice from our home Insurance that they are cancelling our policy because of exposed wires discovered by their inspector.

Be sure to hold a hefty reserve to handle on-going maintenance, capex, taxes, and insurance.

., realtor fees) and documented remodel expenses ($50K).

If you have checkbook control you’ll have a bank account with a bank that has FDIC insurance up to $250k per account.  

Looking my insurance policy it mentions that I can opt for settlement under Actual Cash Value vs Replacement Cost. 

The insurance is higher along the coastal areas because of potential hurricanes but not bad the further north you go.  

Deductions like mortgage interest, property taxes, insurance, repairs, and depreciation will help offset taxable rental income.This post does not create a CPA-Client relationship.

Make sure to account for property taxes, insurance, and any HOA fees, as those can vary significantly in different markets and impact your cash flow.

You can also write off expenses such as property management, insurance, repairs, etc.