Out of the flips that I've done, I have spent far more repairing or removing damage from cats than I have dogs.

With buyer demand increasing in this neighborhood and a large margin available after repairs, it was a perfect fit for a full renovation.

You can buy what looks like the “perfect” deal on paper and still get crushed by bad contractor bids, material delays, holding costs stacking on you every month, blown timelines, loan extensions, septic failures you didn’t even know were possible, mold hiding behind drywall, constant change orders, buyers backing out at the last minute, inspection repair addendums that destroy your margin, permitting nightmares, and labor shortages that grind everything to a halt.

Over this time, I’ve learned a lot about tenant management, repairs, cash flow challenges, and the ups and downs of being a hands-on investor.I’m also an app developer.

The deal just doesn’t have the income to comfortably support that much debt.Your report shows the cash flow after the refi dropping to around $939/mo, and that’s using pretty optimistic assumptions (5% repairs, 5% CapEx, low taxes, low insurance).

Most investors here adjust DD based on the property’s condition and competition.2️⃣ Your inspections still matter.Even though the seller doesn’t have to fix anything, a strong inspection report gives you evidence to renegotiate if the seller wants to keep the deal alive.Plenty of sellers agree to repairs or credits because losing the deal means re-listing and explaining those issues to the next buyer.3️⃣ You still get your earnest money back as long as you stay inside the DD window.So at least you’re not losing everything if you walk.4️⃣ And honestly the DD system filters out unserious buyers.Which is why sellers like it, and why North Carolina deals usually close smoother once DD is paid.I agree it's different, and it feels harsh at first, but once you start knowing how to play the DD game, you realize you still do have leverage just at different stages of the deal.Happy to break it down more or talk through your specific deal if you want. 

Separate your repairs from improvements.This one matters for taxes.Repairs = deduct now.Improvements = depreciate.Mix them up and you’ll either overpay taxes or trigger recapture later.2.

Quote from @Marcos Cardenas: Quote from @Mario Morales: @Marcos Cardenas I can answer his words of wisdom is make sure you have some cash for repairs and vacancies.

Learn real numbers.ARV, repairs, and what cash buyers actually pay.

You can still deduct things like mortgage interest, property taxes, insurance, repairs, and depreciation, which can add up to significant tax savings.As others mentioned above, you might find doing a cost segregation study beneficial to accelerate depreciation, and you could also explore whether renting the whole duplex as a short-term rental makes sense.There are a lot of things that go into this.