Your future year ROE will showcase the remaining equity CCR (hence ROE), and your new cash should be reinvested at some prevailing pre-tax rate (say 7% for example).

Every accountant thinks that knowing the numbers and taxes is what makes a deal work.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Cash Flow Analysis: Conduct a thorough cash flow analysis, taking into account all expenses, including property taxes, insurance, maintenance, and potential vacancies.

Additional costs like HOA dues, neighborhood maintenance funds, and property taxes over the duration of the build should be factored into your financial strategy.The foundation of any successful partnership lies in a robust operating agreement.

I will give an example, in San Diego at 50% rent ratio (experienced investors should do better than this), the prop tax alone is 20% of the rent.  

You’re already at $360k with Reno and lost rent, $6,000 in mortgage payments plus a thousand in taxes/insurance, another thousand for utilities.

Keep in mind that they will be looking at your tax returns.  

Tell them they pay attorney fees $7000, notary fees $400 for two people two locations, recording fees $100, any title or taxes it will slow down the desire to make changes. 

All of these things are great for you as a customer, you are protected against all kinds of bad things happening on the jobsite.Plus your finished project will now be legal in the eyes of the City and your Insurance Company.and they pay their taxes.