They will average your Net Income over the past 2 or 3 years and that would be how they determine your ratios (Debt to Income).

----------------------------------------------------------------------Property type - 2 duplexesFannie Mae REOPurchase price $369,000 (includes $40k renovation)Financing - FHA 203(k)Down payment - $8559Out of pocket renovation - $20,000Rebate - $1500Final out of pocket - $27059Here's the monthly cash flow -Duplex 1PITI - $1467.50Unit A rent - $1100 (below market - this is a family member)Unit B rent - $125015% vacancy/maintenance reserve - $352.50Net income - $530Duplex 2PITI - $1467.50Unit C - owner occupiedUnit D - 20% personal use, 80% vacation rental - $1500 (average)15% vacancy/maintenance reserve - $225Additional VR expense - $450Monthly loss - $642 <--- Not quite living for free, but not bad...and my in-laws have their own apartment when they visit!

What do you do to keep yourself focused, motivated and productive, while in a holding pattern?

In LA you have to screen the heck out of your tenants, but the good news is that the demand is astronomical for well located product and people can't afford to buy so the tenant pool is generally much better than in lower cost markets.Like I said, I am ready to diversify though.

So I just got back from a VERY productive meeting with an out-of-town landlord who's tenants just moved out.

If your target was a 10 cap but the inspector said a new roof was needed now for 8,000 you would go 86,940 purchase - immediate capex (8,000) = 78,940 offer priceMost investors shoot for about 100 minimum a door clear after anticipated costs and debt service per month.Remember the costs average out to 50% but some years you will use more and some less but it will average over time close to this.Big ticket items you need to build a cost reserve stable of when those items will reach past the life expectancy and plan accordingly.If you look at the BP file vault on here there is some free stuff and I believe a cost reserve stable in excel example is on here somewhere.

That being said, Quickbooks is a pretty poor platform for the kind of inventory production accounting involved in flipping.

As for the video games comment, video games are the death of productivity.

It seems there is little use getting an appraisal on a finished product if you are not using a loan.

Pretty simple to use and there are tons of other SaaS products that can integrate with it.