The rules of thumb I have heard are people targeting a 24% return.

My basic rule of thumb I give to wholesalers is if they can figure out what the market sale price will be when the home is fixed up, subtract around $45k and that is where I need to buy it. 

The formula is simple and is as follows, 75% of gross rent - PITI = net rental income.If net rental income is positive its added to your total income and improves your purchasing power.If net rental income is negative then its considered a liability similar to a credit card or a car loan that you gotta qualify for.Some banks have "overlays," or additional requirements they place on top of borrowers when you have rapid acquisitions of multiple properties but by no means is 2 properties in one year considered "rapid," by most lenders, however 3-5 would be its an underwriter and case by case bank "call," to make. 

The RSP rules are very strict with little room for flexibility.

@Jules H Yes, you can execute what is called a Construction 1031 (or Built-to-Suit or Improvement 1031, they all mean essentially the same thing).

To my knowledge you may use an FHA or 203k loan for any residential property 4 units or under. these rules apply to all 50 states.

I don’t want to be underinsured, but even the agent said their recommended “rule of thumb” amounts seemed really high for the unit. 

Thank you in advance.Not sure if diff state have diff rules but I live in Texas!

I did do a cash out refi ~6 years ago, but it was in conjunction with capturing an improved interest rate on our primary residence.

Would that violate the more than 3 owner financing rule without a mortgage lenders license even though it is only one note?