You should have a breakdown of how the cash to close is derived.

Our plan is to hold long-term (10+ years), with a primary focus on positive monthly cash flow and equity capture through strategic renovations (targeting a 10% to 15% increase in equity above the cost basis), with a secondary focus on properties that are likely to appreciate in value over the investment hold period and tax benefits derived from investment real estate.Right now, we are trying to identify real estate brokers/agents in the DFW area that specialize in 2-4 unit buildings with a real estate investor mindset.

Hi @Joseph Kelly,You would provide a sample Pro-Forma including all purchase costs, rehab budget, financing costs, holding costs, taxes, selling costs, expected time to complete, ARV (After Repair Value) and derive a projected profit from those figures.

That $2400 figure is based on the current owner's appraised value which is ultimately derived from their original purchase price.

For that one I walked him through the project with the scope of work in hand (derived from our design changes and the inspection report), and had him bid it out based on my scope.

It is the income you derive from working at a job or owning a business.

I think you're asking if the status quo is the best investment scenario, so I'll answer it that way...Personally, I would put what you believe the FMV is as purchase price, with the cash down on the house being all of your equity (however derived), your current loan being the loan terms and the $4k being the rental income, with all expenses of course whatever they actually are.

The underlying economic resilience of the area is derived from demographic (population) growth and median income.

Furthermore, where the economic benefits to the individual participants are not derivative of their co-ownership, but rather come from their joint relationship toward a common goal, the co-ownership arrangement will be characterized as a partnership (or other business entity) for federal tax purposes.

The sponsor derives their sale price with an exit cap rate (NOI / Exit Cap Rate = Sale Price).