- It's only good for food haha).The quotes came back as such: $5500, $6400 and $7800 for a new 3 ton unit and installation..I was appalled as these prices didn't sit right with me so I decided to take matters into my own hands and do some on the ground research since I just so happened to be in Houston that weekend.They say your network is equal to your net-worth so I immediately reached out to my network of investors and got the contact of a formidable handy man in the area.We were able to cut out the multiple middlemen and go straight to the wholesale distributor (cutting off all middle men would mean going straight to the manufacturer but it's not possible to buy one off units from them).I paid $1000 for a brand new 3 ton unit and was charged $500 for the labor of the handyman...Needless to say, I'll be working with this handyman for future projects and repairs..Total cost - $1500 and 2 hours of my timeTotal savings - ~$6000Because of my spidey sense and network, I was able to save a ton of money, form a new relationship in the process, acquire a connect with the wholesale distributor and write this article..

I am debt free outside of my primary home, and am very much of a DIY person, and can pretty much build a house from the ground up. 

Cash-on-cash is relative and it is only one metric...and it really only works for year one to put properties on a level playing field so we can compare where to put our limited dollars.

I have spent a lot of time and energy trying to get to this point and want to really hit the ground running.

If the 165 ARV is based on the bad layout, you could compare the cost of a floor plan change to how much it would increase the ARV. 

Residential uses Comps (Comparable Sells) to determine the value.  

Those "boots on the ground" individuals are crucial to my strategy and success as an out-of-state investor 

Rent is based on market rent of comparable size and quality rentals.

Grounded and calming advice will not only put me on the right track but will also help  me sleep tonight.

If you invest this money in the flips, you will owe bigger taxes compared to rentals activity.