I am looking to build a SFR on .5 acre in AZ.

For CA investors Nevada has many tax, landlord, and market job growth advantages.

would love to chat more about the process.DM'd ya. :)*I'd estimate moreso between $195-$250/SF to build, depending on finishes.

They are asking 950K.Gross rents: 100,800Utilities: 3KInsurance: 7KProperty taxes are roughly 10K for each 450K in value.Repair/Maintenance: Don't have figures yet but I'm assuming it'll average out around 10K a year.The lender I am speaking with also requires me to also include an 8% vacancy rate and a 5% management fee whether I have those or not.With an interest rate of 8.15% and 20 year amortization, I can't get close to a 1.2 DSCR until my amount borrowed is down to about 450K. 

So if you are starting from a negative equity position it takes a lot of time to build that up.

This is very desirable since you can comfortably live with a girlfriend/dog/whatever, and not lose comfort.Buying a SFH, building rooms, renting every room and sharing your room will almost certainly cashflow in most markets (outside of VHCOL cities).

You will have to pay tax on the depreciation recapture and gain on sale (if applicable).

I think if you set up a brokerage account with the same bank that your business checking account for the LLC is at, you can simply move the money from the checking account into the brokerage account and then purchase something. like USFR, which pays 5.4% in T bills with zero risk of loss or BKN which pays 5.7% in tax free Municipal bonds if able to tolerate some risk (this gives me a >9% tax effective rate on my cash).

His rent pays our property taxes, our water and sewer bills and will be paying to replace the windows in three of his rooms come springtime.

I’m super active on IG @investwithzasha and live on Maui with flips, rentals, RV parks, office and apartment buildings plus other cool projects coming from $0 on Maui to multi-millionaire.