I focused on a more detailed market analysis, being more knowledgeable on homes and prices of materials/installation costs within the homes and used that to position me as a pro in negotiations and setting higher prices for listings and being able to make strong arguments for those prices.

If they decide to install a new roof on the house, but only get through the demo phase, and quit before a giant monsoon, etc. how am I protecting this down side?

If all the usual factors are against me (high utility bills, bad interest rates, vacancy, etc) then I will make 2K…if the stars align than I might hit 12K in a year.In a completely fabricated example, the below screenshot indicates that I have a 33% chance of having a negative cashflow on an annual basis (small red text at the $0 mark).Models like these are pretty simple to construct.Simulation InstructionsTo get started:1.Install the excel add inI like ModelRisk, it is free but there is also @Risk by Palisade.

I will stay at the airbnb at least once (probably more) to come behind and check that everything was properly taken care of, but I can't make that trip constantly.

if you are near the end of the lease for the tenant you can list it with seller notes saying currently occupied and will be delivered vacant by end of escrow and make sure to give the proper notice to the tenant that you will not be renewing it

New carpet was installed through HD and was put in for under $500.

I found a off-market deal about 2 months ago, and I was about to close the deal, but apparently the owner has some tax problems.They owe 6k at the county and from what he said " there was an issue where their payments were not being properly applied to their account for several months and they can't even make anymore payments until the company tracks down the payments they already made".

We usually install a second (half or full) bath in basement along with a rec room.

A proper lender will be happy to oblige.

This way you can properly screen them and establish a clean /proper lease.