I also use it to formulate my initial low-ball offer to see if they will bite or counter.TTFN,Greg

You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck and let me know if you have any questions.

It's great to see someone young who's already thinking strategically about their financial future.

@Matthew Allen I should have mentioned as part of my response yesterday the following regarding PP of building:-I used $800/month in my calculations but you have to (conservatively) know that you can get these numbers, or use a lower number-the reason you might use $800/month in your underwriting instead of $675 (actuals) is because you're strategically trying to arrive at a purchase price that is attractive to the seller (competitive versus other offers) and yet still going to yield great ROI for you-as I mentioned, you need to use a detailed underwriting tool (spreadsheet) not a BP calculator.

@Jeff Pavalone, Thinking strategically it's certainly fine for your parents to do a 1031 into a property near you. 

The plan is trying to unlock value when investing in Cali and strategizing to capture equity appreciation in the next 10 years-and maybe higher rents (increasing NOI).

You would be able to strategize how to handle that situation versus blinding walking into rising insurance costs.

Which also requires you to have some knowledge of said costs in order to formulate that number, or bring in a contractor with you..I suppose you could do a rough verbal offer.

Always thing of your end goal in mind and that will help you formulate a plan.

What do you want to accomplish in these timelines and what will be your strategic initiatives going forward.