If I wasn't paying utilities I wouldn't pay more than $150k for it assuming $2500 in monthly gross rents.

I had an employee that was very much like this.

I would manage the rehab with my employee as GC and him doing much of the work.

If you are W2 employee it would be a good idea to get a pay stub or two with subject property address.

Using the property analysis sheet, here are details:Price: $170kRehab: $20k (estimate pending viewing)Closing: $3,400 (2% estimate)Total cost: $193,400Monthly rent: $2100 Annual gross w/12% vacancy: 22,176Estimated annual expenses: $8,674 (taxes, insurance, maintenance, utilities, advertising, PM)NOI: $13,502Cap Rate: ~7%I tried to be conservative with expenses, and it looks to be a fair deal.

If you decide to go bigger and get loans an larger houses with more gross income, you are still going to land around 200-300 a month in net income per house most of the time.OR, he could start making 40K immediately and save up rigorously.

Could still be profitable if "blow-up" happened annually, which appears very unlikely.Desirable area near public transport & 1 block from Lake Merritt in OaklandNow let's talk numbers..MonthlyOwner rents units to me at: $1,000I rent them out at market: $1,600Gross Spread $600Vacancy Allowance from owner $42Total Monthly Gross $642Actual Vacancy $133Other turn costs $42Net Profit per Unit/mo $467# of units 3Total Cash Flow $1,400.00 /moThat pencils out to just under $17K net annually to me if there are just regular turnover costs, without any "blow-ups" like drawn-out evictions, significant damage, etc., which I would expect to be rare, given the tenant I believe I can pull due to the desirability of the area.

When I told the support staff employee "Cam" these issues he recommended that I cancel the serviceMy ledger started each property with thousands in debt even though my ledgers were balanced and there was not debt for any property at the time.

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"End quoteMy first followup question:It's my understanding that I need not be concerned about the impact of the Safe Act and licensing requirements if I'm using just my money to loan to others, and that I have a broker creating the loan documents.

"If" this was the scenario, and you purchase at $174,000, associated costs of $42,000 put you at $216,000, with a sale price of $263,000 you still gross about $45,000...This is just one approach though....Best of Luck!