Cash flow (in my portfolio as a whole) covers my expenses.

It’s certainly going to be more expensive than if it was done right the first time but this can’t be a big deal in the scope of a full gut.

Hello Mike, It is nearly impossible to answer this question without taking a deep dive on the numbers of each but often times in expensive markets like Seattle the cost of construction is so high that it doesn't make sense to tear it down unless you can build something way bigger/nicer.

It has been a very expensive lesson.

According to Realtor.com, EMD is typically between 1% and 2% of the total home price and is money you pay as a show of good faith when you make an offer on a house.But, it’s not an added expense.

Now we could just pad that into the Pm fee, and then we'd raise the PM fee to encapsulate that expense.

Equity Created: $550,000 ARV - $409,000 loan balance = $141,000 in equity.Cash Flow: The property rents for $2,950/month, covering all expenses and generating slight positive cash flow.HELOC Potential: Post-refi, I can secure a HELOC up to $86,000 (90% LTV) to fund future investments.

I am currently located in The Bay Area, California and I am little nervous about  investing out of state but I thought I would give other cheaper markets a shot other than my backyard which is expensive.

Here's a breakdown of both the risks and opportunities:Risks to ConsiderHigher Interest Rates: Financing is more expensive now, which can compress cash flow and make some deals less appealing on paper.

It's not too expensive however, after buying our condo in the summer we are lacking the capital to go in on it by ourselves.