I had the opportunity to buy a flip at 400k, the exterior repair cost came in at $50k and the interior was so bad no one would give me a quote. 

Ask questions on their fees, do they charge you for filling the property, what do they do/charge for handling maintenance or repairs.

If that’s off, even by a little, it can snowball over time and make things really messy and eventually cost you more money when you do decide to work with a CPA or if you sell down the road.One option you could try if you're not sure is having a CPA handle just that first year to get everything set up correctly (basis, depreciation schedules, categorizing repairs vs. improvements, etc.).

Honestly, even after the repairs, and the hard money and everything I came well out ahead.

So, give them money to move.Bought for $157,100.38 ****** ARV$245,000.005 bed 3 bath – Phoenix AZThese are the numbers from the HUD statementBought for $157,100.38 ****ARV$245,000.00Existing Loan Amt Payoff $118,145.37*Subject To$118,145.37****Closing Costs From HUDTitle$1,045.00Escrow$1,400.00County Taxes$538.38Recording Fee$120.00Cash to seller$10,000.00Misc other charges$525.00Total Amount Due $$13,628.38***Arrears To Bring Account DueTotal Number of Missed Payments:11Total Payment Amount$10,095.47Unpaid Late Charges$146.84Additional Amounts:Foreclosure Fee/Cost$354.19Unpaid Advance Bal$1,101.75Total Amount Due $$11,698.25***FHA Loan Mod 2nd$11,582.44***My Out of Pocket$36,909.07***Total Cost Basis of Purchase$155,054.44ARV (After Repair Value)$245,000.00Repairs Post Purchase$ 5,000.00 +/-Unrealized Profit$84,945.56***Equity (ARV minus Subject To payoff)$126,854.63***I strongly recommend having 3 months reserves as follows:Monthly Mortgage$917.77(Taxes included)Electric Monthly$362.21Water & Sewer Monthly$102.80HOA – None$0Reserves3 months mortgage payments @ $917.77 per month = $2,753.313 months Electric payments @ $362.21 per month = $1,086.633 months Water payments @ $102.80 per month = $ 308.40 Minimum Reserves Total $4,148.34Then I turned around and sold it to someone in CA on a Lease Option for $265,000 getting $20,000 down on a nonrefundable Option fee, and rent of $1,900 a month.

The one thing that I went to because the more time you have getting another property, doing repair requests and all the other stuff that comes with land lording I gave it to a book keeper.

Ensure your target Class B properties can truly generate positive cash flow after all expenses (mortgage, taxes, insurance, vacancy, repairs, capital expenditures, management fees).2.

Stuff will break you don't expect and need repairing or replacing.

That means you report rental income, but you also get to deduct all the related expenses (maintenance, repairs, depreciation, etc.).You’ll pay higher property taxes without the homestead, and financing is typically a bit tougher (higher down payment, slightly higher rates).You’re on the hook for landlord responsibilities and compliance, even if it’s just your kid’s roommates.Which makes more sense?

The answers feel about 75% more accurate when you prompt it to slow down — kind of like when my wife tells me to slow down when I get excited about a deal.