You don't have to do this but every dollar you buy less than what you sold, or ever dollar you take in cash is considered to be a profit first.  

People who are against Condos usually say this:The HOA will eat up a lot of your profit.  

Another assuming question is, if all goes right, which is usually the plan but typically not the outcome, is the profit all subject to tax even if its partially used to pay yhe HELOC?

Go to your local rent court proceedings for eviction - you surely will find some referrals thereAsk the tenant to manage themselves - they can call for maintenance - and deposit their rent check into your account at the bank when due - give them deposit slipsTrain someone to do the things you don't want to do - pay them a percentage of the rent - there are lots of folks who would love to do this for youManagement takes a big bit out of your profits - be smart save the bucks - do it yourself - it ain't that hard.

It's in an up and coming neighborhood so I did have the idea of renting it out in the future or selling it for a profit.

The people you do business with need to know you are in business to make profit and you will recover your losses from vendors who are incompetent or cheating you.  

Hello BP,I'm a new real estate agent out of Michigan and I'm curious what the most effective way to generate leads.

It seems like basic math to me, and if you are trying to help your "client," then you should put their profits above yours, and above your colleague's, and above your brokerage.I have received this runaround from both Windermere & Sotheby's in the past couple weeks and it is extremely frustrating because they have both specifically said they would tell the Seller that they should not trust an offer if it does not go through another realtor.

Usually it has something to do with lack of cash flow, overpriced properties and you will lose all your money.But after making about $1 Million on average per year profits for the last 10 years for my Partners and I, I think I have had the last laugh.I also reserve the right to pass on this offer if the group takes too long.

Our potential plan is to co-finance the construction of an ADU for short term rentals as 50/50 partners and then split the profits interest.