I would encourage you to chug along and you will continue to tackle more and get to zone for smooth sailing soon...

We've already done our zoning research and there are no issues or easements to worry about.  

For example if you pull rental comps etc. and then you find out things are in a flood zone, rearrange your process to check floodzone first. 

Some of the differences with SFR that make them less valuable than otherwise similar comps are location on a busy street, smaller lot, bad condition, structural defects, higher tax area, different school zones, different deed restrictions, access to main roads, rush hour traffic, obsolete or unpopular architectural style, inferior finishes, time since remodeling, age of roof, flooring, and others too numerous to mention.To get the discount to fit your formula, you’d probably need to find a house needing significantly more than $15k of work.

Hi @Marc Anthony,Very helpful question you raised, seeing as there's so much incentive to work with all prospective clients and disregard red flags.

Before 40 randoms mention it you COULD potentially roll this capital gain into an opportunity zone- they're very specific and half the people on the internet will tell you wrong information about them so IF you decide to look into that reach out to a tax professional who is knowledgeable in them. 

I think right-offs like home office can be a red flag to the IRS and so I would recommend not, even if you can. 

You'll have to check with your local zoning code on requirements as well. 

Originally posted by @Kalen Jordan:So far my takeaway is that there is not much consensus on this question 🤣😭 HahaKalen, this is where we enter the danger zone on BP.

I will say this- if they operate without insurance that is a huge red flag to me.