We decided to buy a property in Los Angeles first so we transferred our rent payment to a mortgage payment while receiving a tiny bit of income and pretty sizeable returns over the longterm.

Once inside I could barely see anything as she had no lights on or bulbs and the windows were covered with black sheets, what strick me immediately though was the washing machine in center of the living room with no drainage, water was just running out on the wooden floor, the place was hot and stinky, she had no furniture of note just clothe in the corner of every room, the bathroom sink was stained with purple dye which was the color of her hair.

Other little stuff, like the bathroom and the lock on the door are easy tiny issues, and the electrical panel is a maybe, only if my electrician thought it was necessary.$3500 credit to me sounds like more than enough money, assuming further investigation didn't reveal much else, obviously I'm not privy to the details of the property.

If you take the same property, but now values go down 20% instead of up...you'd lose 100% of your original investment even though the property value only dropped 20%.As mentioned, it's a useful tool, but financing is just a tiny part of real estate investing - you need to focus on a lot of other factors to make a profit.

Besides water damage, the one thing that you get on laminate is a tiny bit of lifting on the edge, particularly if there's a lot of flexing.

The sink will need to be propped up for a day with wooden stilts before you can hook up the plumbing.

I suspect that the partial culprit is an enormous tree in the tiny backyard that is maybe 6 feet from the house, but don't know much about this type of thing.

Then you have a similarly priced new build a tiny bit farther out and they are the same price.

There was water damage to the parquet wooden floor in the living room where the tiles had buckling but returned back to original state in 2-3 weeks.

In the next 6 months (or sooner) I plan to convert the workshop space into a studio/tiny house so I can downsize and rent out the "big" house.