At that point we tested the waters and gave them the option to keep the money or to reinvest it in another property.

Just keep an eye on how both markets are performing, and maybe start small, like taking out $50k, so you can test the waters without over-leveraging.

My idea is to get the $120k out of it during the refi after renting it and rolling it forward on the next one.

The sustainability test is that 3/4 of units need to cover 75% of the mortgage from my understanding.

@Mindy RosscupThe knowledge you gain by studying and taking the test to become a RE agent.

If you’re concerned about paying personal capital gains tax, remember that flipping the property means you’ll take the profit all at once, while with BRRRR, you can defer some taxes and have the property generating income.So, here’s what I’d do in your shoes:If you can make a decent profit flipping and then use that cash to roll into your next investment, you might be better off taking the cash, at least for the first project.

Engage with property managers for insights on rents, expenses, or off-market opportunities, and request financial documents like rent rolls and profit/loss statements from sellers’ agents as part of due diligence.

They don't have time to sit around wondering whether to keep those old boxes of used toilet paper rolls.

If he really wants to "roll up his sleeves", he can scout properties in your community (or on the internet) and get paid a "commission" if he finds one of your investor-friends in Omaha to buy it (aka, acquisition fee/finder's fee).

After the property is acquired, during any 30-month period, the additions to the basis need to exceed the adjusted basis at the start of the 30-month period.What is the 50% of gross income test?