I’ve developed a Comprehensive Investor Report (CIR) for a property in Palm Coast, FL, designed to be transformed into a luxury rental asset while serving as the foundation for a scalable asset management strategy.Here’s a quick snapshot of the deal:Property: Red Birch Lane, Palm Coast, FLCurrent Value: $350,000+Mortgage Balance: $165,000Current Equity: $185,000Investment Required: $177,500 (for luxury upgrades and optimization)Projected Monthly Rent: $4,500 with 2% annual increasesTarget ROI: Full 1.5x ROI for investors achieved in 9 yearsLuxury Features: Smart home automation, designer finishes, professional-grade kitchen appliances, and more.I’ve also structured a capital distribution plan with a waterfall approach:8% Preferred Return for investors.Full Return of Capital to investors before profit splits.Post-ROI, a 20/80 split (Investor/Management) ensures long-term alignment.

The Justice Department’s acting assistant attorney general, Doha Mekki, put it bluntly: this case is about ending the practice of “putting profits over people.”

There is realized gains & profits, and UN-realized gains and profits.

Whatever money they make off of securitization from the borrowers note is pure profit.

Back before I retired, I didn't need any of the cash flow at all so all profit just rolled back into more properties.

After analyzing the potential ROI, we negotiated a fair price of $58,500, ensuring room for renovation costs and profit.

@Alex Hymanson  you should read the book...Storing Up Profits. 

Whereas for me (at this stage of my investing career and my personal life) if a project is profitable and supports my ability to live somewhere with better cost of living and quality of life, the balance between the two can be just as valuable. 

Look for ways to increase profits but without cutting corners.

Keep in mind the more you write off the less money you will show as you net.If you have (2) full years and depending on how the accountant files your taxes you will have a schedule C more than likely or another schedule that shows profit and loss.