This sounds like a home run and a great first purchase!!

I work with several real estate developers across the country and they all do it differently.My suggestion is to find a property type and an area/neighborhood/city/market that you are drawn to and plot your course from there.As for the amount of money you'll need, it's gonna be mostly driven off the purchase price of the property.

@Aristotle KumpisWe do 10+ Flips/BRRRRs annually and fund with Hard Money and Private Money.Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule.Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs.Of course, with private lenders, you must give up equity or a return on the debt.

He negotiated a $5k discount on the purchase price, and I moved forward with the deal.Fast forward to now - after seeing water in the basement, I hired a professional to inspect it, and the news was not great.

In the next 2 years, I'll be looking to purchase a MFR to househack. with the idea of reinvesting all of the cashflow to help scale.

What this leads to is higher purchase prices but also higher rents in these areas. 

I don't think I can ask the seller to evict prior to purchase, although that would be the best scenario.

It burned to the ground a week after purchasing.

Purchase price: $900,000 Cash invested: $15,000 6BB/3.5Bath 4000sf on 3.4 acres near several wedding venues.

These estimated costs should then be reconciled back to actual costs or the purchase price.Have you had a cost segregation study performed?