I don't like the 2% rule, 50% rule, green shirt on Wednesday rule or any other "don't worry you don't have to think just do this one thing for all" rule.

Examples are foundation work or restructuring the property, adding a bathroom, increasing the size of kitchen, building an addition,… These are considered high risk flips as costs for repair my substantially eat into profit or make it a loss unless you have done it before and know exactly what type of work you are getting into.For my first work, I am more interested in doing a rehab with most common improvements such as paint, carpet, broken windows, leaky roof, counter tops, garage doors ,…. that will prove me with a good learning experience as well as a reasonable profit as a bonus :-)

I think the best way to look at investing is to hedge your risk as much as possible and prepare so you aren't eating Ramen in order to pay a loan payment.How's the rental market off your campus?

And just like when you walk into that Chinese restaurant looking for a hamburger, your options are to find someplace else to eat or to just suck it up and find the best thing you can on the menu.

You've made a good start by finding BiggerPockets, if you are green to the idea of land lording/investing spend some time reading those particular forums.

A hustler buys apples and stands on the street corner to sell them in hopes he sells them, he could be eating apples.

They will eat away your profits.

So the floors alone can eat up a huge chunk.

But if your license is parked at some brokerage, do they eat some of your fees?

I think CAPEX of these $20k houses will eat into this cap rate in a major way.