When you approach a deal as a relationship rather than just a transaction, the opportunities multiply.For instance, I was once approached by a seller who was the father of a girl I’d gone to high school with.

Your credit score is high enough to get something done, but whether or not that delinquency will fly is going to depend on the lender/underwriter.

Granted this primarily filters out the small deals or the highly leveraged deals, neither of which I do, but making 20% on a ARV 150k house is $30k. 

Most CFO clients that I work with that are new construction/home builders usually target a 20%-25% gross margin as they usually have to deliver high teen returns to their investors.Great question. 

Is there a limit to how high I can go? 

Since your property has high resale potential, some lenders may be willing to work with you.Cash-Out Refinance – If you’re open to refinancing, you could take out a new mortgage for a portion of the home’s value (say, 60-70% of the $500K), and use the cash difference for renovations.Personal Loan – If you have good credit, you might qualify for a personal loan for part of the rehab costs, though interest rates are typically higher than secured loans.Partner with an Investor – Given the potential profit, you may be able to find a real estate investor or contractor willing to finance the rehab in exchange for a share of the profits upon sale.Your best option depends on your financial standing, timeline, and risk tolerance.

@Cathy Ries Yes, tax planning before acquiring rental properties is highly beneficial, especially given your situation.

Hey Rebecca, I'm a broker and investor up in Sacramento and manage about 100 investment properties (STR and LTR).Many of my clients are high W2 earners seeking "bonus depreciation" to offset tax liability by investing in STR.

It's crucial to consult with professionals experienced in 1031 exchanges and partnership dissolutions to ensure compliance and optimize tax deferral.Given the complexities, seeking personalized advice from a tax advisor or attorney is highly recommended.

It could be 50% high, 50% low or right on the money but no matter which of those three it is makes no difference.