It can eat your lunch on its own. 

Unless its anywhere north of $10-15k worth of damage ill eat that cost to keep record clean. 

She will carry back a note for the rest, payable after sale.This is the structure of the loan with the repair cost embedded within the loan, which I can now modify.Fix N Flip - HML @ 65K - 6 Months (Worst case 12 months)Expenses Buying Costs (2350) Appraisal (450)Home Inspection (500)Title Insurance (600)Title Company (800)Holding Costs (3000) Taxes (477)Insurance (500)Utilities (1800)Financing Costs on 65K Loan, eats up my 10K (5000 Cost - 10K tied up) 6500 DP (Equity I get back at closing)3900 in interest (closing fees)1000 misc (at closing)2600 in reserveSelling Costs - (16800) Realtor (15.500)Title Company (800)Appraisal (500)Attorney (500)Repair Costs - 25K (lumped into loan, deducted from .75 percent ARV)Total Expenses = BC (2300) + HC (3000) + FC (15000) +SC (17K) + RC (25K) = 62300Loan Cost - 10K available for DP and Reserves = Max HML Loan of 65K Loan @ 65K - 6.5K DP = 58.5K - 34250 = 24250 as Down payment to Glenda Loan Interest (3900) (Points embedded into interest)10% Down Payment (6500)Holding Costs (3000)Buying Costs (2350)Repair Costs (25K)Downpayment to Seller (24250) Owner Finance the restLoan @ 65K - 3900 - 6500 - 3000 - 2350 - 25K - 24250 = 0Scenario 1 - Even Split of Profit,  Loan with Realtor ExpensesTotal Expenses = 127K Purchase Price + (BC (2300) + HC (3000) + FC (15000) +SC (17K) + RC (25K) = 62300 DP) = 189,000Net Profit = 225,000 - 189,000 = 36K - 10K* = 26KSeller Profit = 127,000 - 100,000 - 26K*My cost out of pocket needs to be deducted from Sale to reach profit!.

In Indianapolis we’re seeing something very similar returns on traditional single-family rentals have tightened, especially in the C/D class neighborhoods where expenses and turnover can eat into cash flow quickly.That said, tenant demand is still strong, particularly in the A/B class areas where residents are looking for long-term stability.

@Jay Hinrichs I suspect that “lunch eating” is about to see a repeat performance.  

If I want to eat healthier, I assign more points to the positive habit I want to focus on, but also reward myself for NOT doing that bad habit.

The leases show the correct rents, deposits, and expiration dates (and if not, this can and should be addressed prior to closing, rather than finding out months later when you likely have to eat the loss).2.

That’s a solid point, those low-balance loans look easy going in, but they can definitely eat into profits once servicing costs and extra work kick in.

Melissa, you are right to pause here because unpermitted work can eat into both your resale value and your refinance options.

From my 10+ years as an investor and consultant, here’s what I’ve seen work for first-timers:Move-in ready: Easiest to manage and rent quickly, but might limit cash flow and upside.Cosmetic rehab: Often the sweet spot—you can increase value and cash flow without taking on huge risk.Significant rehab: Can work, but only if you have a reliable team (GC, trades, inspectors) and understand the rehab numbers; otherwise it can eat your time and cash fast.For a first deal, I usually recommend something manageable that still offers room for value-add—cosmetic rehabs are often ideal.