At $2450, it will cover those expenses.

So, your focus may need to pivot from high rental cash flow to little to no cash flow as a rental with an appreciation upside.I would recommend taking your $150K to $200K and securing a solid equity position in something that will cover its expenses and maybe provide a small cash flow, but then is poised to appreciate nicely over the course of the next several years. 

I tend to stay in my lending and financing lane lol Hi ClaytonMany thanks for the kind offer, Since this is a rental property, my living home insurance(which is way less even though my living home is value about twice the rental property) does not cover landlord insurance. 

There will always be people with money who want a second home in Colorado who are fine as long as their mortgage is covered.

Any semi-intelligent agent is going to do the math and want to cover their expenses.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Basically 75% of the total rents need to cover all the bills.

You can use your existing $25k + HML to cover your first flip, and make anywhere between $10k-$25k in the course of 3-6 months (given market, location, etc.)

John said no, that our offer wasn't going to cover the design work and I asked him what the cost of the design work is.