The gun shop has been extremely profitable within its first year and we are dumping all of its revenue into ineventory and paying off the building.My main goal out of all of this is to spend more time with my family.

For rentals, you need to have profitable exit strategies in case your loan gets called due.Keep in mind that it's the borrower that has the right and ability to reinstate, not you.

For short term, (Profit / investment), which includes all your holding costs and rehab costs that YOU pay for. 

However, I've found it incredibly simple to do, and profitable.

The main reason that we cannot agree on a purchase price is because the home owner believes that I am over-estimating the repairs needed to achieve a higher profit in the end.

It would be tough for many to generate great wealth with that rate of return. 

No profits, no products.  

This, even at conservative occupancy rates, would generate quite a bit of CF. 

Does a prudent REI take into account earned equity as profit? 

We both had our names on the deal and we split profits 50/50.orI am doing a rehab.