Get your mentor to partner with you on a deal, where you do all the work to acquire, rehab, stabilize, and manage it, and you split the profits.

Also, if I'm understanding correctly, you're saying that you think you could make significantly more profit than anticipated now?

Figure out in detail what it would cost to purchase, manage and return a profit.

If I am planning to use the profit to buy another unit, do I still have to pay taxes on it?

He calls me and says; "I have 123 under contract for 25k" ARV is 100k and it needs 35k in repairs.So taking a quick glance at the numbers we're looking at between 30K to 40K in profit assuming all goes well.

So, if rents are $500, you can afford to pay about $25,000 for the house and still have a profitable rental.A better rule of thumb is the 50% rule.

The goal is profit without stress and anger.If you want the person out sooner than 60 days, offer a cash benefit ... such as the return of the deposit.

You would now have 5 houses that I'm guessing would be cash flowing about 425 a month or so before repairs/vacancies.Rents: 1275x5 = 6375 per monthPayments: 450x5 = 2250 per monthTaxes and insurance (i'm guessing here):350x5 = 1750/monthTotal profit before vacancies and repairs: 2375 per monthIf you use the same numbers, you current have one house cash flowing about 925 per month.And here's the other thing.

No exit strategy per say but of course will take a profit where presented but I am content to collect rents as a significant part of my income.

Take your time, mistakes can be expensive, but a good education can keep you out of trouble and profitable in any market.