Britt,My firm has evaluated some smaller properties (under $500k) in the past for cost segregation, and it generally does not cost justify moving forward, since the benefits are small, and typically the tax liability on the income is minimal if any.

I didn’t have a pre-approval amount per se, I just knew that I didn’t have to worry about funding for anything under maybe half a million and my typical purchase and rehab was in the 150 to 250 range.

In hot markets, some wholesalers and investors use 80-85% of ARV (minus repairs) instead of the typical 70% to stay competitive.A few tips:1.

It’s better to start small and gain experience than to get stuck overanalyzing.Keep the questions coming!

Personally, If I could pull out a HELOC, I would use it to fix and flip which will typically make sense as you shouldnt be keeping the money out for that long and you can recycle it or pay it back and build off the capital that you got from. the flip.

You are going to gain a lot from this group of investors. 

No 1.75% funding fee so conventional loans typically have less closing costs.

@Joe Gellenbeck Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

So essentially you’re saving on capital gains, but getting lower returns for that capability.

With an SDIRA, you can use tax-advantaged funds to purchase property, and any income or gains from the investment grow tax-deferred (or tax-free with a Roth SDIRA).