HOWEVER, this is a VERY expensive way to acquire property and can backfire if the new appraisal doesn't come in where you need.

Real estate investing is forgiving; the average person can still make money even with some big mistakes.

3) Remaining $5625 is reimbursed to me as home office expense.

You can also write off expenses such as property management, insurance, repairs, etc.

For what it's worth, I tried to run your numbers using the proforma I use with my CFO clients and I'm getting an IRR (average annual return) of nearly 23% (see page 2): Kalamazoo Properties

I am subletting a property that I am planning on purchasing the set up where instead of any type of security deposit I am re-having the property which is necessary before I rent it out.I will have about $20,000 in expenses all before I purchased the property.

With SFR, they appreciated at a national average of 3.8% from the last study that I read in 2024.

I have been researching this and even submitted my first offer, but my lender says he has never seen 3.5% work because 75% of your rental income needs to cover all of your monthly expenses.

I guess from an "all things being equal" framework, what are the variety of reasons that an older home are more expensive to insure than newer homes? 

A little about me for context: I live in a very expensive market in Rye,NY.