While I’d love to invest locally, most properties here are beyond my price range.Right now, I’m compiling a list of potential properties, underwriting deals, and reaching out to Realtors.

Your agent in Sacramento should've brought this up and checked those rents for you prior to making an offer.Often when renting to a residential care facility you'll get higher rent than normal, and if that's what making the deal work just make sure that it will still work if something happens to the facility and you need to rent to a regular tenant.

Purchase price: $122,000 Cash invested: $41,000 Value after renovation $175,000.Closing $ 31,000 Renovation $ 10,000 How did you add value to the deal?

Granted once I rent out the unit I leave, after vacancy and everything we would cash flow almost 400(minus heloc as well)All the deals I find.

Hey @Brad TooleyIt’s great to hear that you’re planning ahead and doing your research before jumping into your first deal—that’s a smart approach!

There was a member on here a decade ago that focused on these type of deals...K.

Quote from @Melanie Baldridge: In 2025 the bonus depreciation rate is 40%.This means that if you bought a property for $1M in 2025, did a cost seg study and found $300K in eligible assets that you could depreciate, you could take 40% of that $300K as bonus depreciation to offset your income in the first year.40% of $300K = $120K.You then apply that $120K to the owner’s personal tax rate to find the final amount that they can defer in year 1.If your tax rate is 37%, you can defer $66.6K.This is a big deal even at the 40% bonus depreciation rate this year.It’s a massive benefit 

Some may tell you that you can systematize anything, but the problem is, every individual home is different (even the newer cookie cutter neighborhoods).Focus on two or three neighborhoods and know what a good deal looks like in those pockets.I would also temper your expectations as far as finding a lot of equity on MLS.  

What made you interested in investing in this type of deal?

Underwrite 100s of deals so you understand what your max offer is.