I am not anticipating a refi as of now.

Failure to  asses variable costs - Similar to the above statement, if you have a high rent roll, and a low cost of acquisition, your variable costs are generally much higher than you anticipate, maintenance, delinquency, vacancy..  3.

I'm genuinely thrilled to be a part of this community and eagerly anticipate collaborating with each and every one of you.

As interest rates are anticipated to remain elevated through 2024, debt will remain more costly.

Things take a little longer that you anticipate but patience and consistency make all the difference

That's why I was curious if adding "Turnkey" or "Everything" language may help cover any missed SOW items that should be reasonably anticipated by the contractor based upon his experience (i.e. subfloor patching/joist work at relocated waste lines for bathroom reconfiguration)...Obviously, you can't foresee every issue, which is what contingency is for...But the more prepared and detailed you are upfront, the better off you'll be in the long run.

Yes, I’m anticipating the contractor hunt to be very taxing.  

Is that the expected rent you anticipate on collecting will go towards the qualifying income calculation, and it may work against your favor and qualifying for a home possible or home ready product.

Let's break things down, hopefully, I am understanding everything correctly...Exit Strategy 1: Full Rehab and Rent IncreasePros:Higher ARV (After Repair Value): This strategy could potentially increase the property's value to $126,000, allowing for a higher cash-out refinance amount.Higher Rent: After the completion of the Scope of Work (SOW), the rent could be raised to $1,000, generating more monthly revenue.Long-Term Value: Completing a full rehab could increase the property's long-term value and appeal, making it more competitive in the market.Cons:Higher Initial Investment: The SOW budget is significantly higher at $15,750, requiring more cash upfront.Vacancy Risk: Asking the current renters to vacate for the rehab introduces the risk of vacancy and lost rental income during the renovation period.Longer Timeline: The rehab process and finding new tenants could extend the timeline before the property starts generating its anticipated cash flow.Exit Strategy 2: Minimal Repairs and Keeping Current RentersPros:Lower Initial Investment: With a SOW budget of just $2,500, this strategy requires less cash upfront.Quicker Turnaround: Completing minimal repairs and keeping the current tenants can significantly shorten the timeline to start generating cash flow.Reduced Vacancy Risk: By allowing the current tenants to stay, the property continues to generate income, avoiding the risks associated with vacancy.Cons:Lower ARV: This strategy results in a lower ARV of $110,000, which affects the cash-out refinance amount.Lower Rent Increase: The rent increase to $900 is less than what could be achieved with a full rehab.Future Repair Costs: Minimal repairs might not address all the property's needs, potentially leading to higher maintenance costs down the line.Financial Analysis:Cash Flow Considerations: Both strategies provide positive cash flow before reserves, with Strategy 1 generating $160 and Strategy 2 generating $148 monthly.

(We would anticipate a closing date in April, so we would have only owned the property for approximately 44 months.