Therefore, it's vital to calculate these costs before purchasing the property.Seeking the help of a 🏗️construction professional is recommended to create a comprehensive budget that includes hard costs (materials, labor), soft costs (architectural and engineering fees), and contingencies for unexpected expenses.

Secondly, if this strategy qualifies for the STR loophole, would I further be able to run a cost segregation study on the unit that I plan to STR, in order to take advantage of bonus depreciation? 

@Joanne WymanThe issue with these homes is the renovation cost will far exceed the after repair value.

I would weigh those two options out and see what costs less overall between an entire new loan and or the blended rate of the two.

, you may not need the book on estimating rehab costs by J Scott; it's great if you want to check it out though! 

Usually 10% of my tenants leave the place better than they moved in, 10% of my tenants leave the place worse than they moved in and we had to exhaust their security and pay the cost in terms of 6 to 12 months rent to bring a property to listing condition (depend on how long the LTR tenants have lived there of course).

What is the cost of the program?

Include not only the mortgage payment but also taxes, insurance, property management fees (if applicable), maintenance costs, vacancy allowance, and any planned capital improvements.

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

I'm wondering: can renovations actually help reduce insurance costs?