What blew my mind through this process is how people calculate returns.

Also if it is intended to possibly be a rental you should calculate the end result of the acquisition, the debt service, the rehab, etc and pretend to get a loan to refinance. then look at the potential rent to offset that monthly cost and see if it would cash flow.

To calculate the cash-on-cash (CoC) return for the rehabbed unit, take the annual rental income from the newly rentable unit and divide it by the capital invested in the renovation.Formula:CoC Return = (Annual Rental Income) / (Rehab Cost)This will show you the return based solely on the funds you put into the rehab.

You need to be careful and make sure you're not including the credit card/paypal payments when you're calculating the amount to use in the 1099-NEC/MISC.

The floor area is to be calculated on the basis of total dwelling unit area.Thank you for making some excellent items to consider going forward.

The rent is calculated from the zillow estimates.

If I was them i would be calculating how much you got in payments subtract that from the amount you invested and then see how much that sums to .. 

Are most of you including things like property insurance, etc in your CoC calculations?

BP calculator does it, its an estimate but works8. 

The IRS partially validated it by saying it is taxable, but they also tax illegal earnings.