Also, from my experience, it gets thrown off on parent-child listings because if the child books, the parent gets blocked, so it double-counts that income for those listings. 

So double check with your tax professional of choice.

Red flags worth noting:“Pull all your cash out” is more fairy tale than formula on the first BRRRR — possible, yes, but not common in a DFW market that’s cooled but not crashed.Verify they’re not double-dipping (earning from the loan, the rehab, and the refinance).Make sure you hold the deed and have transparency on all draw schedules and invoices.3.

The layout allows for an easy addition over the garage, potentially adding 2 unitsThese units could generate approximately $36,000/year at $1,500/month rent per unitFinancial Overview & Valuation: At current income and stabilized rents, the property offers a 6.5% cap rate on a $700,000 valuationRenovations and addition of two units would cost approximately $350,000Post-renovation, the ARV (After Repair Value) is projected at $1.4 million, with the potential to double the annual revenueRun Your NumbersWith the current market pricing in the mid-$600,000s and being on the market for only 30 days, 5000 Florence Ave represents an exceptional value and scaleable opportunity.

Lower down payment and less risk @Aaron Zimmerman That’s a really balanced take — and you’re right, the $80–125K range can be a bit of a double-edged sword.

The problem with Laredo right now is that the growth has doubled or tripled the capacity of the infrastructure. 

Double-check with your CPA that the amount of depreciation and tax saving is worth it. 

Recommend demanding the owner follow California laws regarding handling of security deposit charges & refund or threaten the owner with lawsuit - many states allow double or triple damages against landlords/PMCs that don't properly follow the laws.

I’d just double-check that the return on that extra cash is worth it, because in some areas you can still get solid cash flow with 20–25% down if you buy right.

This was a foreclosure bailout loan, so their interest rate doubled.