I typically would not invest in active RE for $1k/month projected.  

That can impact tenant experience and long-term asset condition.From an operations standpoint, financing doesn’t just sit in the background — it influences how aggressively reserves are built, how capital projects are prioritized, and how much flexibility there is when unexpected expenses hit.

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.

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.

If you are staying overnight only to work on the flip, such as meeting contractors, doing repairs, or checking on the project, the hotel expense is usually considered a business expense and can be written off.

This is after the projected year of profit starting in 2023. 

Some markets have 20-30% rent swings between summer/winter that can make or break your cash flow projections.

I’m in the early stages of my real estate journey and joined Bigger Pockets to connect with other investors, learn from people with more experience, and surround myself with individuals who are actively growing in this space.My background is in renovations, and I run Precise Home Renovations LLC, which has given me a strong understanding of construction, materials, budgeting, and project management.

I toured a lot of properties before buying my first rehab project in a Class C neighborhood. 

Do you think it would be easier in another state outside CA if I could be there while it happens and have property/ project management support?