Your net gain is your net sale, minus your adjust cost basis.

Those situations go bad more often than not, costing you money and the friendship.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

There is extra costs, more regulation, and more liability. 

It cost $38,000 for the framer to take on the risk and do the work - and that does not include the cost of the GC, or architect, or plumber that was also required!)  

Hey @Matt Smith 👋🏽I agree that it's not worth renovating the basement - too costly.

This is unlikely to be profit, this is to cover your costs on the backend at move out.Secondly, find a good pet addendum and have them sign it.

With that said, the income can still offset the cost of holding the property as a long-term investment.

You won't find a deal where you live for free, but if you can live in a great neighborhood at a reduced cost of living that is a nearly risk free way to get started in real estate. 

By year three, I aim to cover all operating costs and, by year four, to generate positive cash flow.Experienced investors say it’s crucial to persevere through the initial challenges while gradually building credibility through positive reviews, and I believe them.