Hello all,I'm thinking of shrinking down my supply of homes.

Beyond that CoC has too many variables to be easily calculated.Equity pay down is possibly the highest risk/lowest return form of investing.

Nothing worse than variable costs for a business 2.

He is paid by the hour and we pay for all supplies.

You could probably get away with classifying it as a supply on your schedule E as long as you don't buy Festool tools or something similar.

There also is a lateral supply pipe from the well to the house which can fail, this cost varies significantly based on the where the well is in relation to the house. 

Keep in mind also, if I remember correctly, UK mortgages for the most part are fixed rate for only a 1-3 years, and then switch to variable.

And there are tons of other variables involved too.

Some LL's provide nothing, others supply some, or all.

Lots of variables, but if I had to reduce it to one metric, I would use:  Minimum profit of 15% of ARV.So, on a house that we believe will resell for $400,000, we'd be looking for a minimum profit of $60,000.That said, here are a few additional thoughts:-  Obviously, not all rehabs require the same amount of time and risk, so if we run into something that is out of the ordinary for either (much quicker/longer or much lower/higher risk), we will adjust that requirement.-  These days, good deals are hard to find.