From my own math it looks like I would clear minimum $600 per month cash flow and possibly up o $1000 per month if I were to hit a grand slam on the deal.  

LESSON #2 Fellow Newbies: Do your homework.

You may have some market-specific benefits not considered here (e.g. very popular vacation destination), so do your homework and keep us posted.

It all seems to be a wash at the end of the day or one Giant math problem.   

If my math is right on the McMansion FAR max, you can build up to an 1100 sq ft ADU as long as your main house is less than 2180 sq ft, assuming 8200 sq ft lot.

Because I did my homework and checked the comp before I made the offers.

Oh, and your timeshare interest entitles you to about 1 second of occupancy every ~10.5 years (if I did the math correctly).Enjoy!

I started doing the math on this deal...and the margins seem pretty tight.$525,000-$42,000 sales cost-$75,000 rehab-$350,000 purchase price-$10,500 purchase closing costz-$33,600 hard money costs (3 pts, 10% for 6 months on $420,000 borrowed)=$13,900 potential profit.  

In the case of a $1,000,000 at a 4% fixed rate 10 year term and 30 year amortization is the math that you figure your monthly payment and interest as if the loan term is 30 years, but there is a balloon payment in year 10 for the remaining principal balance?

Steve Babiak It's apparently been too long since I took a math class.