Even with the additional incurred costs, we still made a decent profit because I was extremely conservative with my numbers given the size of the project, however, if I did not account for that additional time on market or those reductions, it would have been a different story.

The cash on cash return is around 16% and because of the size of the units there is significant growth opportunity for being able to increase the rent in future years and for the property value.  

The other option is just to consider it rental income for that year and have 1 year of off the charts cash flow.Appreciate any input. this is my first post on the forums.Brian 

The mortgage on the $500k list price would be somewhere around $3400 (assuming a 30 year fixed rate @ ~4%).If you look at my chart below, you’ll see that according to my calculations I should be saving around $1,400/month relative to my current situation.

Your jurisdiction should specify what extent of work (size) requires a permit.

For example, is a 2/1 w larger rooms/open floor plan and bigger overall living space (1200+ sf) more valuable than a 2/1 that’s a more modest size (800-1000).

I am looking to buy a decent sized townhouse in the Lehi area with the plan to live in it for a few years and then hold on to it as a rental if the numbers make sense when I am ready to move out.

Wanted to see what the experts in this community seeLocated in NJSFR, 3bed, 1bath, 1,100 sqft, lot size 9,435 sqftSits across a lagoon, Waterview not waterfront, currently not in a flood zone (reassessed next year and expected to fall into one)*Town requires that it be lifted by 2024, the cost will be about $50,000 all in.Purchase Price: $175,000 (10% down)Last Tax Assessment: $236,800Taxes: $5,328 per year ($444 monthly)Home Insurance: $1,200 ($83 monthly)Flood Insurance: $450 ($37.50 monthly)PMI: $101 monthlyElectricity: $100 MonthlyGas: $50Water Sewer: $25 MonthlyRepairs & Maintenance: 5% ($110 Monthly)Purchase:Down Payment 10%: $17,500Estimated Closing Cost: $9,000Total Down: $26,50030 Year Term @ 3.875%The goal is to rent the other 2 bedrooms at $750 each. 

@Christopher VincentCurious as to the size of these deals that you are targeting.

I would rather flip and get my big profit now than cash flow $100 a month when leaving a big chunk of money in the deal due to the size of the project.