Lenders will want detailed plans, permits, and a budget before approval, so having your design and cost estimates ready is key.In short — confirm zoning and feasibility, get an architect and experienced GC on board, and work with a lender familiar with new construction in Fayetteville.

What is the purchase price and expected reno budget? 

@Kyle Hoppman We're not from Wisconsin but I'll tell you from experience we don't use any rules or calculators when budgeting for flips or BRRRR deals.

The real issues arise from everything else investors underestimate: increased cap-ex budgets, rising insurance, higher turnover costs & higher vendor pricing.

I’m guessing 9 out of 10 either never bought anything or bought a few turd properties in crappy locations then sold them at a loss after a few years of dealing with all kinds of BS and writing a lot of checks for stuff that wasn’t in the budget, switching PMs six times, etc. 1 out of 10 is probably the number of people who are able to be successful at it, but I might be overly optimistic.  

Stay on budget with the flip BUT leave out expensive projects like a roof, windows, or major mechanicals that still have useful life (for a rental), so you can pivot into a rental.

A lot of new investors overthink where to start, but the best move is finding a market with solid cash flow, landlord-friendly laws, and good property management in place.I’m an agent in Memphis, TN, and it’s been a great market for newer investors because the entry prices are lower, rent-to-price ratios are strong, and you don’t need a massive budget to get started.

The rent amount may not be the issue, but what you are offering is pretty rough.The other issue is that the only type of tenant you can attract with beat-up finishes are the ones who are on a budget and "don't care".The single best thing you can do is personally tour some of your competitors close by.

With your projected numbers, you’ve got solid potential equity, but watch your rehab budget closely.

To answer your question on what I wish I knew earlier: Never trust the "Estimated Repair Cost" on a wholesaler's flyer.A lot of new investors get burned because they assume the renovation budget is $30k, when in reality (especially in older East Atlanta homes), it’s closer to $60k.