Do you know which strategy you want to pursue?

We're thinking to start with smaller deals with ARV's in the 125k-150k range, since that is a range we can comfortable work in without needing outside financing.Although we have owned several homes over the years, are handy with a hammer & saw, and have a solid background in business and finance, we have not actively pursued investing in Real Estate.

If you find out its because of the tenants dishwasher and negligence of not repairing, they are liability and you can pursue their insurance company to investigate.Good luck!

I've heard in some states it can take years to get approval for such renewal resource farms, so what are the hard limits I'm looking at to make it profitable?

There's nothing like appreciation to trash a perfectly good cash return.Might be time to consider selling into a 1031 exchange to shield the profits from capital gains taxes and avoid depreciation recapture.

Is it based on my mortgage plus profit for taking the risk?

Each new property I buy has fewer problems and more profit. 

@Mario Martini What a great name:) , need more info to be of any help, generally turning basement into living s.f. is profitable(with permits) and can return around 65% of your main floor per square foot price.

Say your property shows a $5,000 annual profit on paper, once you consider the write-offs like depreciation, mortgage interest, property tax, etc, what kind of tax bill should you expect?

@Theresy Williams anything you find that we can buy I'm happy to JV the profit with you.