I definitely recommend starting house hacking, then look to input sweat equity for repairs to refinance or sell later

Robert, great question – I hear this a lot.The biggest underwriting pitfalls I see over and over aren’t the formulas, they’re the assumptions:Underestimating taxes, insurance, and utilities (especially after a sale when taxes reset).Being too light on repairs/CapEx – roofs, HVACs, turnover costs, and unit upgrades.Not stress-testing debt: DSCR at higher rates, lower rents, or slightly higher vacancy.Assuming rent growth and exit cap rate that are too optimistic for today’s environment.Having one “master” spreadsheet that tries to handle every deal type and ends up clunky and hard to trust.Most investors really need a simple, custom template tied to their specific buy box and risk tolerance, not a one-size-fits-all model from the internet.

Be careful with big square footage.A 2,000 sq ft home sounds great, but for rentals it often means:• higher taxes• higher insurance• higher repair costs (HVAC size, roof, flooring, paint)• higher turn costsIn many markets, the extra 500–800 sq ft doesn’t translate into enough additional rent to justify the added expense.A 1,200–1,500 sq ft 3-bed is the sweet spot for durability and profitability.4.

That means your STR losses, especially if you do a cost segregation to accelerate depreciation (don't forget about deducting furniture, supplies, utilities, cleaning, and repairs) can offset your W-2 or other active income.So even if you can’t hit REPs in 2025 because of your W-2 job, you may have already qualified for the STRs rules without realizing it.

Be sure to check out the subfloor before you figure out your repair costs or you could already be thousands over budget.

and of course no repairs/alterations.

Also pictures of maintenance and repairs performed.

Not necessarily turnkey but should need minimal repairs if at all

@Matthew RichenFor a 4-bed unit in Shaker Heights, a reasonable ballpark for a full interior repaint is usually in the $2,500 to $4,500 range depending on the condition of the walls, ceiling height, number of coats needed, trim work, and whether there’s any patching or repairs involved.

So, this is how we put the deal together.First, you determine ARV (After Repair Value) so you can see if this one is actually worth buying.