You can buy sub2 as well.All that said, credit is a small part of the transaction, your education, experience, knowledge, team, and abilities all will factor in.

It may not cover the entire mortgage, but if you factor in the savings from other people people your living expenses and the wealth building that is going on, plus tax savings, and appreciation, - then it's totally worth it.

Hi Cody,If you are purchasing a home at 550k with 30k in renovations needed, with an ARV of say, $600k>= you will lose money.The average cost of sale is an absolute minimum of 3.5% when you factor in the buyer's agent's 2.5%, and closing costs 1-2%.$600k * 3.5% = $21,000 | $600k - $21k = $579,000 or ($1,000)  You would also need to have a broker's license in this scenario as well. 

I have considered the below factors that resulted in choosing Sacramento as the place.

You're buying the future cashflows of the property so a corporate signature McDonald's is going to trade for a similar CAP rate across the country, all other things equal ( term remaining, scheduled increases, NNN or Absolute, etc.)If you are looking at some kind of local single or multi tenant building, then your local market will have a larger effect to factor for likelihood of replacing a tenant should they leave.

I have a 3 bedroom SFR on the east side of Plainfield that we have been marketing for 21 days with minimal interest and I'm wondering if it has more to do with the time of the year or other factors? 

How many properties have you looked at to be able to say that no matter the property or market, you will only do deals at 20-30% off of ARV which also makes no sense because why would ARV factor into your offer price in that way? 

Obviously the market is up right now but overall long-term expectation in your market will be a big role.Even if you were only breaking even (after all expenses and maintenance factored in), you're still building equity.

What property values actually do is less of a cash flow factor than what properties rent for and what kind of inventory is there in the area?

Any other factors here that I could be ignoring which would make this deal a positive cashflow property?