This shock factor often leads them to question what other elements of the house may need updating, even if the paint is a relatively easy fix.

I have 2 factors that I know play into it, but there's always more beneath the surface.

It wasn't a good deal $90k because of the age, weird layout, and the bathroom was tiny. 

California with both its terrain and rainfall can easily increase their water storage by a factor of 10.  

The rehab estimate seems very low and the ARV seems really high in my opinion, just based on a tiny bit of research looking at what this property was listed for recently (it hasn’t sold), and what the surrounding similar properties are worth (~$250k).

This helps you identify which factors drive the best returns and make confident, informed decisions.It’s also important to test your numbers with scenarios like higher vacancies, unexpected expenses, interest rate changes, or rent adjustments over the years.

To answer the question about your DTI, if you are going to be utilizing a DSCR loan for any new investment properties, your income/DTI is not going to be factored in. 

That will play a factor for qualifying.

And in REI, correction happens when inventory increases among other factors.

@Ben Cochran I hope you have factored STR tax savings into your cashflow and ROI as it can be significant.Leveraging equity to purchase a short-term rental (STR) in Tampa Bay can diversify your portfolio and potentially generate strong cash flow, but it also increases your financial risk.While your properties hold significant equity, adding debt from HELOCs or a DSCR loan could strain your finances if STR performance fluctuates or costs rise.