Place is a dumpy/disgusting, been vandalized, no floors, bad roof/ birds got in, kitchens barely exist, full bathroom reno,  needs all new plumbing and electric, new roof, new windows, all appliances, obviously paint / fixtures/ doors etc.

Budget for 5%-10% CapEx — not based off percentage — calculate how much the item would cost to replace and how long it has until it needs it then do the math — (roof, water heater, appliances, driveway, HVAC, flooring, plumbing, windows, paint, cabinets/counters, structure, components- garage door…, landscaping) Closing costs — around 1.5% property value RehabDetermining Cash FlowJust subtract income- expensesCoCROI (cash on cash return)Total Annual Cash Flow / Total InvestedRule of Thumbs General guidelines and not strictly accurateThe 50% Rule A rental property’s expenses tend to be about 50% of the income, excluding the mortgage P&I CashFlow = (total income x 0.5) - Mortgage P&I Helps just to quickly screen a property for further researchThe 2% Rule The ratio between rental income and purchase price Property’s monthly income must = 2% of the purchase price or greater The percentage varies on the areaCh. 6Investing While living in an Expensive AreaSunday,September 8, 20199:21PMAre you looking for homes on sale?

I have used Gorsuch Plumbing out of Signal Hill for Sewer Pipe inspections for several real estate transactions and have been extreemly satisfied with their service.   

Purchase price: $20,000 Cash invested: $60,000 Fix and RentPurchased Needed full remodel, foundation, electrical, plumbing, roof, HVAC, kitchen and all 3 bathrooms, new flooring throughout.

At the highest level of detail, the bid should have a detailed breakdown with the prices for each room, "Kitchen Cabinets, $XXXX; Kitchen Tile Floor, $XXX; Kitchen Drywall, $XXX; Kitchen Plumbing, $XXX". 

This house is around 700 sq/ft with a sagging roof, 1 interior wall separating this area with the kitchen, minimal floor joists, hardly any electrical and no plumbing.

Go to the supply houses--the ones that deal directly with contractors like plumbing supply, electrical supply, roofing, etc. 

I’m going to call around and see if I can find some used machines My plumbing master had a pretty decent idea as well.

On a different count, why did they intentionally separate out regular plumbing business from septic system business?

This project came with a lot of lessons regarding the plumbing, but we will definitely not be making the same kinds of mistakes on the next house.