IE; If you are looking at a P/L for last August, but annual property taxes are due November, you are not getting a good "monthly" snapshot.If this is due diligence, you will also want to verify the data being placed into revenue and expense.

I am a Dan Diego RE investor and most of my purchases were easy to see that they would make money.  

I would strongly advise anyone starting out not to be in a rush to skip steps, but rather to take the time that it takes to save for the first few to learn and pay down "the dumb tax" of figuring out what you don't know. 

Unlike holding real estate, where you can take advantage of depreciation to lower your taxable income, fix and flips don't offer those same tax perks.

Look for some alternative financing so I don’t have to sell investments and incur capital gains tax.5. 🤷🏻‍♂️?

We were planning $600/mo mortgage payment, $100/mo insurance & $100/mo taxes - balloon payment in 5 yrs.We are providing $5k to pay back taxes ($4k), back hoa ($125), pump septic & grease trap clean out ($225), survey ($600)  & our children are paying closing costs ($1500).Deal stalled as owner backed out on seller finance.Suggestions?

@Mario MoralesCash-on-cash return measures the amount of cash flow relative to the amount of cash invested in a property investment and is calculated on a pre-tax basis.In theory if your rental income increases by X amount annually due to the rehab while holding your expenses constant so it directly increases your bottom line (cash flow), you can calculate the CoC return by inputting X/$45k (the cost).

Just as a heads up as not sure which timeframe of BP podcasts, but before covid you could do a BRRRR and get all your money back out of the deal, today that is typically not the case and you will still have money in the deal - so just wanted to mention that.Lastly, you are way ahead of me and many others already as I cannot swing a hammer :)

In that case, you would have no cash in your pocket but get tax bill.Assuming you are using an LLC or a sole proprietorship, you pay the taxes on net income when you pay your personal income taxes.

Option 2: I can sell it and pull all the equity tax free, since I'm married and it's our primary residence.