The real prohibitive costs come from the legal, compliance, and reporting requirements of registering a security.

Simply put, we start off with the As Repaired/Completed Value (ARV), then subtract from that number a reasonable profit, the rehab cost (scope of work), which we've gotten good at, a contingency reserve for any "unexpecteds", our cost of capital/carrying costs (interest and costs of the leverage used), and our costs/fees on the buy and sell sides of a flip.

That's where you should start, because I am afraid you are way off with your cost projections.

Again I cannot collect rent to justify this cost/effort.  

Multiple people including myself have tried to caution him of the the true costs but he's been repeatedly dismissive and has made it clear we give him motivation and he wants to prove us all wrong (whatever that means). 

.: Cost of risk scenario. 

@Denise Lang Starting your real estate investing journey out of state can be strategic given California's high costs and tenant-friendly laws.

Transportation and Infrastructure9.

Time and practice will still teach you as you do deals but it will help you understand what things costs for the size of the property 

You also have to ask about delivery costs and more.LABORLabor charges are trickier to understand, but Google AI to the rescue!