Therefore, it helps to include it for the purpose of the exercise.

Purchase price: $443,000 Cash invested: $60,000 I've included the mortgage, a 5% rental vacancy rate, and a 5% capex reserve.

If so, that could be a determining factor if you plan to manage yourself... closer is easier. 

These include depreciation and all expense deductions. 

There are a lot of factors and a few different ways to go about this.

You would not be able to be classified as "materially participating" under what you propose, you must meet a couple of criteria to be considered including 100hrs+ spent on the business and more time than anyone else.

Its hard enough to find the "right" house to live in, but when you add factors like: foundation repair, new roof, new hvac, complete cosmetic over haul, it makes it that much more difficult.Certainly can be done, and not only that, you can find a house in Collin county off market cheaper that what you would pay retail.Its important to make sure you have a resource for properties, an investor friendly lender Ie.

I am risk averse and if I were to purchase, I would tear down to the studs and do a full rehab {this would include getting rid of asbestos shingles and insulation).1) I have done a ton of research and it appears as if getting rid of asbestos is very DIY able assuming you spend money on the safety equipment and use it properly. 

Let me give you an example of how these deals are structured:Seller wants to sell their property, but for various reasons (including cap gains taxes, low ball offers from cash buyers) they prefer to seller-finance their property instead.

 There are a lot of factors to take into consideration when drastically changing the blueprint, especially from an under writing perspective.