Hi there have a look at my site, I have an example there on how I do it.
You just have to factor the holding cost into the mix, you cannot have a tenant while you knock down walls, paint, etc, etc. Same with the “break”fees.
In regards to working full time and doing the reno work yourself, you got to ask yourself, are you a handy person?, would you be neglecting other areas of your life during the time it takes to do the reno work? (kids, wife, exercise, etc.).
Renovating is a “cash intensive” strategy; and requires some level of property experience. Maybe you would be better off making a plan, like most investors do:
– Buy an income producing property, manage it well, and wait for the appreciation. (3-5 years)
– Track your expenses, get a pocket size pad and for a full month, write everything you spend your money on, the trick trying to “steal” some of that money back to you, I am talking about the Coffees, cigarettes, beers, take away, etc, etc, you will be surprised with this exercise. I still do it once a year. Great way to build up some cash reserves.
– In the mean time, start planning about your business and keep your day job till you have the cash, the bullet proof plan, etc.
It sounds like the “boring” way to do it, however this is how property works, there is not quick money in property without putting the years of work, planning, learning, etc, etc.
Hope this makes sense,
Happy investing