Purchase price: $30,000 ARV $65k needs no major work, mainly cosmetic.

Airdna, rented.com, vacasa, evolve, and other major companies in the vacation rental space all have lists with supporting data about the best places to invest in vacation rentals.

This section prescribes rules for tracing debt proceeds to specific expenditures.Treas Reg §1.163-8T(a)(4)Treatment of interest expense(i)General ruleExcept as otherwise provided in paragraph (m) of this section (relating to limitations on interest expense other than the passive loss and nonbusiness interest limitations), interest expense allocated under the rules of this section is treated in the following manner:(A) Interest expense allocated to a trade or business expenditure (as defined in paragraph (b)(7) of this section) is taken into account under section 163(h)(2)(A);(B) Interest expense allocated to a passive activity expenditure (as defined in paragraph (b)(4) of this section) or a former passive activity expenditure (as defined in paragraph (b)(2) of this section) is taken into account for purposes of section 469 in determining the income or loss from the activity to which such expenditure relates;(C) Interest expense allocated to an investment expenditure (as defined in paragraph (b)(3) of this section) is treated for purposes of section 163(d) as investment interest;(D) Interest expense allocated to a personal expenditure (as defined in paragraph (b)(5) of this section) is treated for purposes of section 163(h) as personal interest; and(E) Interest expense allocated to a portfolio expenditure (as defined in paragraph (b)(6) of this section) is treated for purposes of section 469(e)(2)(B)(ii) as interest expense described in section 469(e)(1)(A)(i)(III).Treas Reg §1.163-8T(c)(4)Allocation of debt; proceeds deposited in borrower's account(i)Treatment of depositFor purposes of this section, a deposit of debt proceeds in an account is treated as an investment expenditure, and amounts held in an account (whether or not interest bearing) are treated as property held for investment.

Needs about $2-3k in rehab but nothing major.

Bidding on a foreclosure carries major risk and should only be done if you are able to absorb a big mistake.

Hi Ryan,Here is how I calculate the reserves for these smaller multifamily deals (I own three 4plexes):Essentially, I determine the remaining life of the major items, like HVAC, water heaters, roofs, siding, etc.

I don't like vacancies in the winter, but I really don't like this tenant activism. 

I wasn't meaning to imply a majority of sellers. 

Ok so lets be realistic, obviously new investors or amateurs aren't going to be able to get professional investors to give a majority profit on new ventures , but what is the best way to start a partnership percentage speaking?

I've seen way to many multi family properties just get into that death spiral of a slum lord and horrible tenants and it's just one band aid after another until finally the owner extracts whatever they can and exits.I personally would want to be buying something at a little lower price, perhaps redeveloping, etc.Build value rather than extract value.If the assumptions above mentioned check out and you're happy with those returns I don't see a major hurdle ----  big however though is that you're only outperforming your cost of capital by maybe a percentage point?