Having excellent credit and strong reserves definitely helps.In some cases, a lender can use an estimated rental income from the property you’re planning to keep (or list for rent) to help offset that mortgage in the DTI calculation.

We invest in areas that without knowing the areas you can be in a war zone or a great area in the matter of a dozen blocks - investing remotely will never get you that intel.Another pitfall is the reno budget (under estimate), the time line and carrying costs (under estimate) and the ARV (usually over inflated). 

Our go-to cleaner is very efficient, and prices are standard, so it is easy to get estimates to our property owners because we normally know what the job is going to cost!

Some firms even offer a free quick analysis so you can estimate potential cash tax savings on a property.

Being conservative in the ARV and over estimate reno costs will give you a buffer especially if the project takes longer than expected and the market continues to soften. 

Make sure your underwriting process is solid—accurate repair estimates, realistic ARVs, and understanding local rental demand are key.

Let's say after a thorough analysis, you estimate that the income might increase by $50,000 per year and expenses might rise by $20,000 per year.Here's the math: we start with the T12 NOI of $500,000.

I renovated the property, and I estimate it is now worth 285k (~97k equity).

The appraisal actually came in at $460K and indicated that my rent estimate of $1,500 per unit was on the low side.

For your first flip, the best process is to keep it simple and focused: find a property priced below market value, estimate rehab costs conservatively, and make sure your ARV (After Repair Value) leaves enough room for profit after all costs, including financing.Stick to cosmetic rehabs on your first deal, paint, flooring, kitchen/bath updates, nothing too structural.