It's a repeatable formula, throughout market cycles (can hold for longer time horizon, if need be) - buy assets that need moderate renovation, in growth markets.

In exchange for giving them a high rate of return (8%-10%), they give you a mortgage and let you use their funds to buy the property, renovate (if needed) and rent it out.

@Jonathan Bombaci I like the idea of trying to maximize the proceeds, but even if he moves out willingly I'm left trying to clean/repair/renovate then list and sell a property three states away from me. 

Here are my numbers ARV - 200kHolding costs - $5400( $900 a month for 6 months)Renovations - $40kPurchase price - $90kClosing costs on the purchase - $5kClosing costs on the sale - $17kI’m just looking for confirmation that I’m doing everything right and that this is a good deal.

I have searched this question on the internet and I found that if there is a renovation or new construction going on in the neighborhood is a one of sign.

The value I added only came later in 2021 when I did some larger cosmetic renovations.

The value I added only came later in 2021 when I did some larger cosmetic renovations.

Thanks for the thoughts @marc riceSo regarding finance, you would recommend buying/renovating with cash, enjoying that sweet cash flow for a couple years, and then refi after that? 

Renovating and managing assets can be a difficult task.

I felt that I would’ve been way over my head with repair & renovation costs.