Parents owned a rental when I was younger, a few family members own their own successful businesses, I aided a general contractor in a complete gut and rebuild of a commercial property and I have unknowingly networked with a few real estate agents, investors, general contractors and service techs through various jobs and hobbies.

Both families are coming into town this week, so I will be meeting with them to view the property and will likely go a lot off my gut what kind of people they are.

Still do buy/repair/sell and buy/teardown-build/sell.Best advice I can give you is... don't go straight from paint and carpet (or even "guts") to new construction.

That's really my thought as well, but as I am somewhat new to being a landlord and screening my own I wasn't trusting my own instincts.

He told me (which I already knew to do instinctively and thanks to reading here at BiggerPockets, but good to be reinforced) to put together a lending package that included: 1) a cover letter explaining the credit history; 2) an "About Me" profile on myself, explaining how my career experience and other factors will translate to success as a a local income property investor and property manager; 3) an "About My Team" profile demonstrating that I have the network and support to succeed.I am fortunate to have a kick*ss team and, frankly, a similarly strong toolkit of personal attributes that don't necessarily ensure success but make it a helluva lot more likely.

Here we go:Purchase price: $51,500Survey and other closing costs: $1,400Rehab budget: $59,000 (complete gut, 4th bedroom addon, deck, demo load bearing wall, minor foundation issues, etc)Holding costs (assuming 6 month hold): $3,500 (3.25% HELOC, taxes, insurance, utilities, lawn care)Conservative sales price: $150,000 (could easily run into the 160-170 range if I'm lucky)Agent Commissions: $7,500 (5%)Buyer Concessions: $3,500 (estimate)Staging: $2,000 (conservative)Total Net Profit before taxes: roughly $21,600I've been working very closely with a contractor and realtor husband/wife team over the past 3 or 4 months finding a deal and he seems very confident in his budget as he's flipped several houses in the past.

And trust your gut.

Things I've done is rented (2) 10 Cubic Yard Dumpsters, replaced the front porch, gutted the entire upstairs, put drywall throughout 75% of the property, rewired the electrical systems, re-coated the metal roof, landscaping and etc.So EVERYTHING I purchased for the property such as materials, small tools such as pry-bars, drywall knife and etc must be capitalized or just the MATERIALS used for the improvements?

But the home would need a good gutting to sell it.

Very helpful (supported my instincts).