I have verbally told my clients the information but I think I will use your list (with attribution) :):)My short verbal spiel would be 1) handy owner occupants don't need to cash flow or make money / profit and 2nd will you have a dumpster onsite the day of closing with day labor for the demo, know EXACTLY which electrician, plumber, flooring, cabinet guy, sheetrocker.....that you will use and when will they start, the PART NUMBERS for the cabinets, flooring, paint colors, doors, light fixtures.....

One of the properties is actually split with a friend of mine - both our names are on the mortgages and our two families have split the expenses and profits 50/50.  

My personal preference is to look at metrics which take the opportunity cost of capital into account such as internal rate of return (IRR), net present value (NPV), or profitability index (PI).

Even if your income never gets low enough or you don't actively participate, at some point the suspended deductions can be applied to the profits when they occur.

Financials: Purchase Price $112,500.00 Renovations $140,000.00 Total Investment $252,500.00 As A Flip: ARV $300,000.00 Closing Cost 7% Net Income at Sale $279,000.00 Total Profit $ 26,500 ROI 10% Annualized ROI 13% As A Rental: Rent Income Month $2,300.00 Yearly Rental Revenue $27,600.00 Yearly Expenses (35% Exp.

No extra profit needed.

I broke even though because I bought properties in distress where I needed to raise rent and do repairs before I made a profit.

They are the primary difference between profit and loss for YOU.The PM is just as important as the deal you find, may be more important.

I may be biased since I am located here, but Memphis is definitely a profitable market and you can still find deals at 70% or less below retail.

Also, I would hope they are not CASH ONLY, that just makes me think they are afraid of appraisals.Try looking at:The Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider