Typically, distressed properties literally sell for Market Price - Expected Rehab Costs, so any equity gained is mostly sweat equity.

Also, calculate potential profits by considering purchase price, renovation costs, comparable sales, and expected rental income or resale value before doing a deeper dive into the specifics. 

If anyone has any tips or tricks to a first-timer, feel free to leave a reply (especially curious about standard practices for identifying deals).

STR looks like an attractive option but I am a novice in this area so looking for input on realistic income and cost estimates of a STR managed by a 3rd party property management company. 

I've had to chaop down a massive oak that cost me about 5K to remove but other than that, not too much.

@David F.As Russell mentioned co-ops are probably 1/2 the price of a condo and you would also have extensive costs to set up a co-op and typically it’s my understanding the builder funds the first 1-2 years of reserves.

The tenant has not paid anything since April 2024, effectively staying in my property for free for four months.

Because of the increased rent from having 3/2 vs 3/1 of $800 per month with added rehab cost of $25k, my break even is 2.6 years.

Double digit loans of $250-500k can be both cost and qualifying prohibitive.

When you gut a space, costs spiral exponentially because you need to bring everything up to current code!