I understand looking for positive cash flow is a good proxy to avoid making bad deals when you’re a beginner, but if you’re careful in your estimates and run the numbers properly, I would believe you can still enjoy a decent return on your property even if your initial cash flow is inexistent.Let’s take the example of a zero-CF property (i.e. it’s zero after opex, capex, vacancy, PITI, property management etc..) in the following situation: I put down 20% as down payment for a 30 years loan, at 4.5%The property doesn’t appreciate over the years and I sell the property after 30 years for the same priceI incur 5% closing costs at purchase, and 5% selling cost when exitingI assume no inflation (hence selling price = acquisition price)In this context, my IRR would be 4.55%.

It was not an easy one, since we are in CA and the property is in OH, but we made it through and are looking to take on our next project.Bought: $79,900Initial budget: $65,000Real budget: $97,000 (mismanaged project by initial contractor (and second contractor))ARV: $219,900Improvements:Brand new siding on the second floor (was not in the initial budget)New roof (was not in the initial budget)Sealed and painted the basement - was quite creepy down there beforeOpened the floor plan from the living to the kitchen by widening an existing walkwayMoved the kitchen from one side of the house to the other to capitalize on the stained glass windowsGutted the upstairs bathroom and added really good looking featuresAdded a half bathroom and laundry room downstairs by the entry to the backyardNew ACNew plumbingNew electricOur contractor performed extremely poorly on this job, and I am happy to share a cautious word with anyone who aims to invest in Cincinnati about the team at Kaiker Development and Creative Customs Carpentry.

The contractor/pro can say that they fixed it & not currently an issue, but still need to disclose - probably put that doc in the supplements &/or give to any potential buyers. 

In addition I paid my parents a contractor management fee which I do include in the costs.Now I know for tax purposes they will not include my personal travel (I already deducted that as on my sched C), I know none of the CC interest or fee's would be deductible anywhere, but regardless I plan to include them on the gross. 

I plan to hire a smaller contractor to handle the job and purchase the materials for them, also probably sub out items they are not good at like landscaping and concrete repair.

Im a general contractor and have done hundred of remodels and multiple turn key properties.

I just put my offer in, and having a foundation contractor take a look at it. 

I recently went to one and networked with other investors who were: realtors, insurance agents, contractors, etc.

Then contact tiny home contractors to see what is the best areas?

Travelling contractors is who I rent to.