Initially the numbers were 40k for rehab cost Lessons learned?

I own the property free and clear and i use the equity as part of my business line of credit.

Simply put, we start off with the As Repaired/Completed Value (ARV), then subtract from that number a reasonable profit, the rehab cost (scope of work), which we've gotten good at, a contingency reserve for any "unexpecteds", our cost of capital/carrying costs (interest and costs of the leverage used), and our costs/fees on the buy and sell sides of a flip.

In my experience, a large percentage of them are fully functional adults that refuse to take personal responsibility for their lives, which is why they are receiving free rent from taxpayers instead of working for a living.

Lets say its $270k and you are financing $220k and it takes a year at 12% thats $26k in interest plus other costs etc.

For example, if she can't visit the property, is she good at record keeping (so everything is organized at tax time) or finding vendors, comparing product prices, finding free or low cost items on Facebook marketplace to improve the rental)3. emergency fund.

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

Feel free to reach out if you have any other questions or would like to discuss!

I usually only have about 2k for closing costs out of pocket.

Feel free to reach out with any questions you may have or if you would like to see some past work.