(Be sure to factor in vacancy, PM fees, maintenance, etc in addition to PITI)•Do you have additional reserves to cover unexpected expenses like long than expected vacancies, high turnover costs, or major repairs (e.g., HVAC or roof replacements)?

There might be Some exceptions such as you did a bunch of repairs/improvements which increased the value of your home .

A cost segregation study was performed on this auto repair shop in Nevada with a depreciable cost basis of $1,250,000.

Add in property manager, repairs/maintenance, CapEx, vacancy etc and you will be deep in the red.

if you ever have a major repair, or an eviction, or a major turnover, you may need to be a little more 'active.'

My view is probably a fallacy as I have not factored in closing costs, home repairs, and the down payment into the equation.

So far there is some indication of a little uptick for 2025 booking - I've already booked out a few weeks beyond the winter, which is when I go down and take care of maintenance and repairs - and in the summer, but traffic and inquiries are way, way down.If you feel like seeing a blood bath, just pull up the MLS and look at the Margaritaville development.

This is because they didn’t budget properly and rent wasn’t high enough to cover actual expenses (repairs and maintenance, cap ex, vacancy and loss, tenant damage and turnovers, etc don’t expect to have any money left over after all of these expenses are accounted for if the rent is less than $1,500/month). 

The property is a duplex with an ARV (after repair value) of $700,000, making it a strong deal.However, I want to ensure I’m not overlooking any potential red flags.

I'm a licenced Broker and I also handle project management for flippers, contractors, etc.FEMA 50% Rule: ALL of the homes that exist in a Flood Zone have a 50% limit on work that can be done to repair them without bringing them into compliance with current flood standards.