Typically at least 20% for an investment property..You may be able to create 3 STR'S, bit you need to check your local ordinances first.

Dear Tenant,As we're sure you are aware, inflation has increased the costs for all types of goods and services over the last several years.

For the investors making money typically they figure out the strategy and location that works BEST for their particular situation and then go all in on that! 

Cost overruns are very typical with first-time flips, and I would strongly suggest any real estate investors, especially new ones, have access to additional funds if they find themselves going over their budget. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Prior to this I looked into a PM but felt overwhelmed by the differences in service, pricing, lack of clarity on what I should be looking for and requiring...

Mario - Taking a "paper loss" because of depreciation is typical from my perspective.

However, I would appreciate further clarification on what you mean by having a Plan B, C, and D.In my experience playing the BRRRR game on a smaller scale, typically with homes valued around $200,000, I have found that it can be challenging to generate significant monthly income, Instead, the focus is often on building a portfolio without having to make substantial out-of-pocket investments, which is indeed advantageous.

Rental income is typically subject to taxation, and you may need to report the rental income on your tax return.

They don't have great customer service, but the policy is priceless.2.