I have remodeled the unit completely prior to putting it to rent, including addressing pre-movein readiness checklist I was given by RL after they walked through the unit (small list of punch items like toilet paper holder, cleaning unit, door stopper etc.).

Items that correlate to rent growth are the same item that correlate to appreciation: diverse economy, population growth, rising wages, supply/demand especially constraints on supply, etc.2) do not make the mistake of thinking residential real estate (RE) is passive.

He has given me a line item quote that includes phasing, budget for materials, etc.

Hi I'm a GC and I use two programs on for bidding which is Joist you can itemize and create individual line items for clients, track expenses and sync to quickbooks (QB accounting software, and Buildertrend which I use for project management, gamut view schedules, payments, and gives access to my clients job progress you can upload photos there everything,  once job has been sold this also syncs to QB. 

Thank you.Get down to brass tacks: Your investment model does not account for the line item expense increases you are seeing.

And while rents have increased since the fires, they are still relatively low compared to purchase costs and debt servicing at today's rates.Now, currently legislation proposals on SALT limits may change the math if you fall into the itemized tax deduction category, but that shouldn't be a deciding factor. 

One thought: why couldn't the PM keep the funds in a high yield savings account and then buy the boats or nice items?

I stick to light to medium rehabs, so I stay away from anything that requires replacing plumbing or electrical components due to the associated costs and the need to closely monitor those items, as I have been burned in the past. 

On the surface, the HOA fee is merely the “recognition” on a monthly basis of the present and FUTURE costs of building being “worn out”, the “repair reserve” that should be included in monthly HOA is not recognized by small SFR property owners as a cost and hence they have an inflated idea of their net - until a major item needs to be replaced.  

It is an item that takes months, but still far better then a decade of foreclosure on record.