You typically need a down payment for many things you buy.

You can use a tool like AirDNA to get estimates of property performance in your specific market and with your typical size and configuration of home.

It is not typical that you will find SF deal after deal, and if you are actively marketing for distressed sellers many...most...will want cash sales.

I am BP's Premiere Featured Agent for the WMass area.

There are other ways to determine rental amounts like researching in zillow and/or rentometer, which I typically reference.

They have a formula based on the property and its features as well as the tenant's income and expenses. 

One thing I am curious of - typically many of the hard money lenders will charge a 1-3 year pre-payment penalty in these types of scenarios unless your client paid points to not have that pre-payment penalty.

That’s because the longer someone has lived in their house, the more that home’s value has grown, which directly increases equity.And if you’re one of those people who’s been in their home for 10 years or more, know this – according to NAR:“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”The Benefits of Having Home EquityWhat does that mean for you?

Unfortunately. this is typically considered normal wear and tear.

However, unless you're doing this as part of a BRRRR strategy, you may end up paying closing costs twice and incurring unnecessary interest on the HELOC prior to refinancing.Additionally, conventional loans often have seasoning requirements of 6-12 months, while DSCR loans typically require only 3-6 months.This post does not create a CPA-Client relationship.