Potential income minus expected expenses.

The risk becomes exponentially higher if the "guardrail" team members are not there to help advise, but know that any additional party involved who is weighing in on a particular deal can hamper the need for speed in cases where wholesalers may not wait for your financed offer with an inspection.

Additionally, I would not get into any fix and flip when the numbers show if all goes as planned I will only clear about 25,000. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I have on my schedule E that I receive rental income from it.I file business returns for that business entity which I have submitted for the past 3 years and now they just asked for the schedule e for the past 3 years as well. 

So that I have the extra income that I want to buy LTR. 

There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.

This trend has continued into 2024, with an increasing demand for rental housing driving up prices and creating affordability challenges for middle-income families.To address this issue, developers and construction companies have begun to explore innovative solutions such as “Build-for-Rent” projects.

The K-1s I received all show a Net rental real estate income loss on Part III line 2 as expected. 

Right now you're earning 5.14% interest on your money, and you pay income taxes on every bit of that $1800 per year.Meanwhile, I won't even consider a rental property unless it pays me at least 10% cash-on-cash return and a minimum of $250+ in monthly cash flow.