I have around $130k in this project so far and am worried that I am going to have to take a huge loss on this project. 

If you’re relying on appreciation, rent growth, no tax hikes, and no major repairs to make it work, that’s hope, not underwriting.Here’s the clean way to think about it:If it rents for only $200 to $300 over expenses best case, that’s razor thin after:• Vacancy• Maintenance• CapEx• Property management• Insurance increases in FloridaThat $200 cushion can disappear fast.Now ask yourself this:Would you buy this deal today at its current value and projected cash flow?

A side-by-side after-tax projection usually makes the better choice clear.

You can't change the neighborhood unless you buy the whole thing.Start with simple projects, as @Marcus Auerbach mentioned above. 

I don't know the final outcome, but at the point I met him, he was over $35,000 into mold removal and still couldn't obtain a clean mold certification.Important ConsiderationsMaximum You Can PayHere is a basic formula for determining the maximum price you can pay for the property:Purchase Price < Sale Price – Closing Cost – Renovation Cost – Project Management Cost – Carrying Cost – Cost to Sell – Profit – PadBelow is an example showing how you would determine the maximum price you can pay for a property.Sales price and time to sell and close: Be very conservative when estimating the property's sale price and how many months until escrow closes and you receive the funds.

We are working on the BRRRR project out of state, and will the rehab period while we manage the reno time count toward the 500 hours material participation?

For example: Focusing only on licensable STRs will save a lot of expense, effort and heartache and having on the ground support for projections, evaluation and assessment are often the difference in identifying or proceeding with an acquisition.

So if anyone is looking to invest in trust deeds or borrow for a project, please feel free to contact me at rk@firstcaploans Also, please take a look at our companies website for further information.Keep me up to date if anyone should locate any active REI clubs in or around the Fresno area.

First-time operators are finding it difficult to complete projects on time and on budget.Why it matters: Notes tied to stalled flips are entering default.

Quote from @Mike Klarman: Most Hard Money lenders do not go 100% costs on projects.