I'm using a hard money lender now for a flip in Northern NJ and they are lending 90% of the purchase, 100% of improvements up to 70% ARV.Adam

They called and told me the keys were on the counter, that the house was clean, and it was ready for the next tenant to move in.Click on the link below to see my YouTube video of what I found.

Look at interior design, or home improvement magazines.Ultimately, look at what's around you.

Account Closed   Yes, one can buy a house in San Diego for less than market value (use $450k as an example), pay to improve it and flip it for a profit ($535 maybe) or keep it as a rental ($2300 plus or minus).

The holding period of a separate element placed in service before the entire section 1250 property is finished starts on the first day of the month that the separate element is placed in service.The holding period for each separate improvement qualifying as a separate element starts on the day after the improvement is acquired or, for improvements constructed, reconstructed, or erected, the first day of the month that the improvement is placed in service.The holding period for each improvement not qualifying as a separate element takes the holding period of the basic property.

However, we are getting a good deal for Home 2 at its price and a will probably see good appreciation if the neighborhood improves.

That's part of the play you should look for in the small town or foreclosure market, properties with extensive recent improvements.  

I made zero improvements to the property. 

I have been seeing deals in Houston where the numbers are improving, so I would question current management.Mark

But those are full rehab numbers (new roof, new HVAC, kitchens, etc) so my % will improve with inflation in the near term as I've already absorbed the bulk of capex on those properties.