Be careful about assuming new construction wont have maintenance expenses - they often have break in periods of a few years while things get sorted out.Allow about 1 month per year vacancy and include that in opex.Consider what happens if you do not sell in a year or two, to quote mike tyson: everyone has a plan until they get punched in the mouth.

This area is pretty expensive and would like to limit my initial investment under 100k including closing, reno etc.Looking forward to meeting you all!

I come myself, estimate what's need to be done, if I can't fix myself, I tell them that I'll call my contractor and as soon as he's available - I'll give them 24 hour notice.Usually I call my contractors for at least $100 job or they'll include the driving time in any job.To call plumber - just to show up - costs $80-100 depends on a company or who's taking the call.

You want to properly document your basis in the rental property which would include providing the closing statement along with costs incurred prior to purchase such as travel, home inspection and appraisal costs.3.) as an out of state investor, how exactly does filing for taxes work when I reside in California but a landlord in Indiana?

Here's an explanation with a sample at the end:Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called estoppel form or agreement).

Aloha Isi, the intended design will be 2 bed 2 bath with carport, carport is not included in the ADU square footage limitations as per the city and county.

Another $2,500 in repairs, if you include the resodding. 

Whether I replace a roof in year 1 or year 5 - it's all the same to me.There are very few red flags, I simply include repair costs as part of the cost model I put together to evaluate the deal.

If the policy(ies) you get do not include Liability, you should purchase that as well.

Factor in about 10% of the sale price to go towards closing costs (transfer taxes, commissions, attorney fee, etc) and miscellaneous expenses and you're at $625K so far - this is NOT including demolition costs, holding costs (taxes, utilities, insurance, management, etc), architectural drawings, surveys, building department filing fees, etc.That said, you may also want to consider the costs and potential benefits of adding sq ft. to the existing home and/or updating the home to potentially boost your sale price.All the best!