If you do your job well, those leads will produce sales and referrals.

Investments must be entirely at arm's length and should be passive in terms of the income they produce. 

I'm really just trying to learn how to analyze properties and determine whether this is a good candidate to BRRRR; one which would produce a positive cash flow.  

Extending the size of a small kitchen from a era when 60' enclosed kitchen was fineThose additions unlikely to produce appraisals that match the hands off costs are Pools, patios, extra BR that bring the count above 4, a Living room or family room where there is already one or the other. 

Even though the seller seems responsive, no luck so far in terms of producing documents acceptable to the title company.The contract is pretty general, as it states:"DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract.

The good news is that we live in LA and any property with more income producing units will sell, its just a matter what financing the buyer can get since it is limited now.Im building legalizing an ADU on my triplex right now so Ill be in this boat but I wont need to refi anytime soon so hoping these guidelines change a few years down the road. 

There was a 7 day contingency on him having an offer on this existing home & if he couldn’t produce a purchase contract on him home that he would either remove the contingency or the property would go back on the market.

But the current tax law allows you to use some or all of that loss to reduce taxable income from the rental itself and any extra can be applied to other sources in many situations, including other rentals that produce a net profit even after depreciation.Welcome to the 9th Wonder of the World: depreciation!

Buy multi-unit properties that I can rent to produce cash flow and appreciation (But focus specially on the cash flow side)2.

Even with these expenses, the property still produces cash flow at 3.5% cap rate.I’ll be living in one of the units so that reduces the chances of vacancy by a quarter.