On a first flip, the biggest thing to understand is that most flips are treated like regular income, not long term investments.

Not worth the cost of the study since it did not accelerate the regular 27.5-year depreciation.By contrast, another investor's $12,000 study on a recently renovated $3.8M office building yielded first-year additional deductions worth over $120,000 in tax benefits - a clear home run.The quality of the engineering team matters tremendously.

Additionally it will come at a much higher rate than a traditional cash out refi, so your blended rate will be higher than just doing a regular first. 

To use STR losses against active income, you generally need to materially participate, which means being involved in the operation of the property on a regular, continuous, and substantial basis.

It makes tracking payments easier and reduces misunderstandings.Property Management: Even if you manage it yourself, create a system for maintenance requests, inspections, and regular check-ins with tenants.Documentation: Keep leases, receipts, and any correspondence well organized.

The second one is for Operating Expenses where  payments are deposited  (rents, late fees, lost key charges, tenant-caused-damage charges, laundry machine income, event room fee), and used to pay  regular monthly expenses.

Then you would have a regular mortgage against that property, and you could limit the amount you borrowed so that you still had a decent cash flow.

Text/call regularly depending on the nature of the work: roughly, take the full timeline, divide by 20, and start following up that often.

I also like to use the lease option model more than having regular rentals.

Hi BiggerPockets community 👋My name is Emiliano Perez, an Associate Broker with Schunk Realty Group and an active buy-and-hold real estate investor based in New York.I work with buyers and sellers of residential and commercial properties, and I regularly help real estate investors and first-time buyers with single-family, multi-family, and mixed-use properties.