Brush up on building code requirements: in basements you're looking for egress windows that are 5.7 sq feet or more openable (3ft by 3ft casement style windows work best), and ceiling heights 6ft 8 inches or greater (as little as 6 ft 4 inches is ok under ductwork and beams though)3.

Once you factor ~6% agent fees plus holding/closing costs, that “profit” window can shrink fast — you could easily eat up $20k+ right there.Couple things to think through before pulling the trigger:Run a detailed cost sheet.

My biggest screw up has been forgetting interest during development.  

Focus on the MTR turnover (sometimes that time window can be short) and ask if they have SOP for cleaners that you can use or view, but also offer MTR weekly or monthly cleaning while the guest is there (owner might pay sometimes, MTR guest might appreciate and pay sometimes).

The latter includes persons on Medicare or Medicaid (I forget which is which) - and they even sometimes pay landlord bonuses.

Sounds logical, however they forget that there are many players out there that do not play fair... 

If its a working class or lower class area forget about it. 

For example, in a Landmarks district in the City here, you cannot have vinyl siding or vinyl windows on the street facing side of the property.

aka, like repeating 1031's, but without having to do the 1031.Recently I've started to think this might be misguided, and that the internal gains might come due Dec 31, 2026, along with the initial 85-90 deferred gain/investment because we didn't incorporate the 1031 aspect (and couldn't have because of installment sales, reinvest window etc). 

Forget the large REITS.