Also, keep in mind that an IN multi member LLC would require a separate tax return, so you would want to budget for extra admin fees.

Negative cash flow with high HOA fees is a red flag.

I know this seems low, but the way I see it, this is how much the buyer would potentially walk away with if they posted it on the market and minus all the fees and concessions so I am getting them to that number with none of the hassle and removing the issue of a looming foreclosure.

Since seller-paid fees usually cover their services, you get local expertise without additional expenses.Final ThoughtsLive where you like, but invest where you can achieve financial freedom.Out-of-state investing has proved to present excellent opportunities.

If you were only going to net 10k and the fees male you a lose then it was never a good deal.If you keep project costs less than 72.5% of the ARV then no lending can screw you. 

@Shiloh Lundahl Awesome, thank you ok so having that 10-20k as a buy in is important, to first getting into it.... it helps get those first deals started.... just as an aside : I am also just starting out doing finder's fee methods - with tax foreclosure overages refunds, and assett recovery / state funds refunds... so I think those can help me to get that intial 10-20,000.... it might take me some months, but I think I can get there.... that's my initial plan, at leastAnd if I can get that saved up, then that will help me break into deals....

All fixed fee with out of scope offerings as well.

You will likely lose 2~4 months worth of rents + court fee. 

State taxes may also apply.To minimize taxes, aim to reinvest the full proceeds into the replacement property, including closing costs and fees.

Also, the fees plus being a forced buyer with a deadline on a 1031 exchange may negate the small tax savings.