If they are, I would pay them off first.I would invest in a different market(likely bigger market) where you can find reliable contractors or find a PM that will be able to manage the properties.

@Rebeca Moreno Welcome to the Bigger Pockets community!

Conversation is no different, motivation is definitely there, but telling someone, face to face, for this deal to make sense; 1 they over paid for the property, 2 they are gonna have to take a 40k loss in less than 12 months.

Hi all,I am new to the online community but have been listening to bigger pockets podcasts for years.

If appreciation and scalability are your long-term goals, consider house hacking or saving for a bigger market later.

.- Additionally, you can track income and expenses consistently using software or spreadsheets.If you track everything, you could show a loss and use that to offset other earned income (such as a W2) which will net you a bigger refund.

Hi Jay, Welcome to Bigger Pockets! 

To calculate Net Profit, we need to deduct: Construction Financing, Investor Capital, Overhead, Insurance, Warranty, Etc.Finishes sound okay, but I would build a little bigger.

What I DO like about Bigger Pockets are the people that are very positive and gives great advice.

. - Some materials for bigger jobs, like concrete, are harder to check pricing on.