Using 15% for simplicity ≈ $25,875Total federal tax in this simplified example: ≈ $59,284The key point: depreciation doesn’t vanish.

Check your full monthly payment with 20% down.Run the full PITI, mortgage, taxes, insurance, utilities, maintenance, and a vacancy reserve.

This is just a rinse and repeat method as long as you have the reserves, the funds to fix up the deals and the ability to pick a deal that is actually a deal. 

I appreciate your initiative, @Kwok Wong, but instead of attempting a few fix-and-flip deals at a time with no money, which is not going to happen, why don’t you save enough cash for a sensible down payment and reserves on one property first?

And remember, the more deals you do successfully, the better terms and leverage you’ll get from lenders.Since it’s your first deal, one big thing to focus on is having enough cash ready for your down payment, closing costs, and reserves.

It helps keep liquidity free for repairs or operating reserves while still allowing you to move quickly on a deal.

You need to be ready to cover the required reserves to get final approval.

Plus, a listing of all Federal agencies the posters can think of.  

—not just PITI, but including management, maintenance, CapEx and vacancy reserves.

Hey Yogendra, sounds like you and your wife are in a great position to start—having solid reserves and dedicated investment capital already puts you ahead of most beginners.