I would be analyzing the deal assuming regular maintenance, Capex, vacancy, etc.

My only advice for out of state is to find a kickass property manger who will also oversee your renovations (and does this regular for other investors) really that’s the golden ticket to getting out of state investing to work.

If your deals bring in regular ADDED INCOME to the budget, you are on the right track.

It'd be iffy if the home could qualify for a conventional mortgage considering all the rehab it needs, so I don't think a regular mortgage is in the question.

Third is a corded Harbor Freight regular duty.

@Jonathan SantiagoThe tax difference between capital gain vs ordinary income is HUGE.Capital gain - Preferential tax rates if long term at federal level, subject to regular tax at state levelOrdinary income - taxed at marginal tax rates at federal level + Self employment taxes + state taxesIntent is what differentiates between a real estate sold being subject to capital gain treatment vs ordinary income.

Unfortunately we also get tire kickers pretty regularly.

It seems like the common theme for investing OOS successfully is creating effective teams and systems in the market you'll be investing, and having solid, reliable property management who you communicate with regularly.

I don't know one individual on the buyer (networks) or seller (producers) side who aren't in fear of losing their job on a regular basis.

I wouldn't count that as an operating expense since its not a regular repeating expense.