Hey Carlos,First off, you can start by looking at what nearby (.5-1 mile) comparable properties have sold for in the last 6 months.

Plan is to buy at $425k, invest $200k in renos and refinance the property around $810k (based off comparibles).

The question is what is your cashflow as a return on invest (ROI) when compared to the amount of your money invested into the property (downpayment).  

My property is around the block from Yucca Valley elementary school and I dont see any comparable STR's in the same block.

Downfall is that the profit is not as great as compared to either wholetail or fully rehab for top dollar but more risk involved.

Before we made our first purchase, I looked at the data on Mashvisor, AirDNA, actually listings on AirBNB, compared them all, and made my best educated estimate for what I forecasted revenue to be for the property.

It is easier to compare closing costs when pre-paids are ignored. 

Storage areas can include built-in cabinets, closets, attic space, and even outdoor sheds, etc.Laundry: Including a laundry area and machines is a big bonus for tenants, as they compare that with apartment living where they would have to use common laundry machines that require payment.HVAC: Make sure to include an effective dual heating & air-conditioning system to service the ADU, so your tenant is comfortable in the unit.Kitchen island: It may be difficult to squeeze in a kitchen island in a small ADU, but it’s a big bonus if you can make the space.

I would also consider looking into Columbus OH as it has great rents compared to prices along with high appreciation.

So studying homes, comparables, and neighborhoods to determine for each property a price that would make a profitable flip is what I'm doing right now in #richmond #virginia.