I generally try to get the most bang for my buck if it's a rental and agree that that kitchen could use a bit of a facelift.

I've heard lots of theories over the years about "clouding title".

You can pay a little above market or market but still need a big spread to be compensated for turning around such a property.I have been there before it is very easy talking about the theory on here but actually doing it in real life is a whole other reality.

Meaning, you may not want to have your tenant living next to you banging on your door when something starts leaking at 9 at night.If you can get over the situation described above, there are huge upsides to the duplex idea.Best of luck!

In theory, that is roughly equivalent to having another $1m invested in the bank (assuming you can conservatively draw at 3.5% - I know, huge assumptions here).

I know a few wholesalers that do it full time but totally agree with you that you can go somewhere else and get alot more bang for your buck, I am basically just flipping and holding now so it makes sense at this point because the 10k is turned into a hundred when your actually doing the work or holding it for years.

My theory is that the management company will monitor their own expenses much more closely than a management contract.

Sometimes people are okay with a profit in theory but their greed bug bites when they find out how much you are making.I would cater to the needs of the new buyers lenders and work out details before hand with the original seller, that should help the process go more smoothly for the end buyers new loans.

Quick clarification:50% rule is based on 100% financing (even if that is only applicable in theory).

Dual use items for personal and business stuff can be linked quickly to give us an accurate cash flow accounting at a high level without investing a ton of time banging stuff into a customized spreadsheet.