All Forum Posts by: Colin Tandy

Fair point, at the end of the day, positive cash flow is the goal. But for many investors, rising costs are squeezing margins, and simply ‘taking in more than you spend’ isn’t always that straightforward.

Beyond disputing property taxes and shopping for insurance, investors are getting creative—cost segregation studies, strategic refinances, and shifting property management approaches are just a few ways to optimize expenses.

Appreciate that! Florida has definitely seen some major increases in insurance and property taxes, it’s been a real challenge for investors to navigate. Have you found any strategies to offset those rising costs on your properties?

And yes, higher returns often come with more hands-on management. It’s always a balance between cash flow and effort. Glad you found the post valuable!

Great points! The reverse 1031 exchange can be a game-changer, especially in today’s market where selling the relinquished property takes longer. It gives investors the flexibility to secure their replacement property first without the usual timing pressure.

The partial 1031 exchange for primary residences is another strategy that many overlook. Renting out a portion of a primary home can open the door to tax-deferral opportunities that most homeowners aren’t even aware of.

Appreciate you sharing these insights! Have you seen more investors leveraging these strategies lately?

Great points! Property taxes and insurance costs can definitely make or break an investment, especially with how they vary by location and property type. I like your approach of digging into tax caps, reassessments, and special assessments—those can catch investors off guard if they’re not paying attention.

For insurance, I’ve seen investors shifting their focus away from high-risk areas due to skyrocketing premiums. Are you seeing any particular markets where this is becoming a bigger issue?

Jay, that’s a great report to have at your fingertips. Having real-time data like this makes it so much easier to spot trends and adjust strategy accordingly.

The median days on market and percentage of price decreases stand out to me—looks like sellers are having to adjust to current conditions. Do you find that this report helps you make pricing or marketing decisions for your project, or do you rely more on other data sources as well?

Bill, you're sharing some great info today, thank you for your comments.

Great breakdown. Looking at absorption rates and rental trends like this is a smart way to set realistic expectations for vacancy and pricing strategy. It’s interesting how even small shifts in supply and demand can impact rental pricing momentum.

I’ve seen some investors overlook absorption rates and just assume their property will rent in line with general market averages, only to be caught off guard when their unit sits vacant longer than expected.

Great insights Bill. You’re absolutely right. Investors can only cut costs so much, but if the market fundamentals aren’t in their favor, cash flow will always be an uphill battle. Understanding supply, demand, and absorption rates can make or break an investment. I see this a lot when investors focus too much on projected cash flow without considering how competitive their property is in the local rental market. Pricing slightly below competition can help with absorption, but as you said, there’s a balance between reducing vacancy and leaving too much money on the table. Curious, how do you personally track market cycles and rental supply trends?

Investing in real estate outside your local market can be a great way to find better deals, improve cash flow, and diversify your portfolio. But it also comes with challenges. Managing a property from a distance requires the right team and systems in place.

• More affordable properties with better rent-to-price ratios

• Access to markets with stronger appreciation potential

• Diversification to reduce risk

• Potential for lower property taxes and insurance costs

• Harder to evaluate neighborhoods and tenant demand

• Dependence on property management

• Less control over maintenance and tenant issues

• Financing can be more difficult depending on the lender

Most of the risks of out-of-state investing can be managed by building the right team. A strong property manager is critical, along with a reliable handyman, lender, insurance agent, and local real estate contacts. Investors who succeed in out-of-state markets take the time to research and vet these professionals before buying.

Out-of-state investing isn’t for everyone, but it can be a smart strategy with the right preparation. If you’ve done it, what’s been your biggest challenge or success?

If you’re investing in rental properties, you’ve probably run the numbers, projected your cash flow, and thought, This deal looks great! But then reality hits—unexpected expenses eat into your profits, and your “cash-flowing” property is suddenly break-even (or worse).

Here are some of the biggest cash flow killers to watch out for:

1. Property Taxes

• One of the biggest and most overlooked expenses in real estate.

• Can increase significantly, especially after purchasing a property at a higher price than the previous owner.

• Solution: Research tax assessments, protest high valuations, and consider landlord-friendly states with lower tax burdens.

2. Rising Insurance Costs

• Insurance premiums have skyrocketed in many markets due to natural disasters, inflation, and increased claims.

• Solution: Shop around, bundle policies, increase deductibles, and consider self-insuring for smaller claims to avoid premium hikes.

3. Vacancy & Repairs (Property Class Matters!)

• A property’s class (A, B, C, or D) dictates its rentability, maintenance needs, and vacancy rates.

• Lower-class properties (C & D) tend to have higher turnover and repair costs.

• Solution: Understand the trade-offs—higher cash flow potential often comes with higher expenses. Screen tenants well and budget for vacancies.

4. Tenant Avatar: Who Are You Renting To?

• Your tenant profile is directly tied to your property’s class and location.

• High-end rentals attract stable tenants but might sit vacant longer.

• Lower-end rentals may have more turnover, late payments, or evictions.

• Solution: Align your property with the right tenant base, offer incentives for longer leases, and build good tenant relationships.

🔹 Big takeaway: The best real estate investors don’t just look at cash flow on paper—they anticipate these hidden costs and build a cushion into their numbers.

What’s been the biggest cash flow killer in your experience? Let’s discuss!

One of the most overlooked tools in real estate investing is the 1031 exchange, yet it can be a game-changer for scaling a portfolio while deferring capital gains taxes.

The basics are simple: When you sell an investment property, you can defer capital gains taxes by reinvesting the proceeds into a like-kind property. But there are some key rules to keep in mind:

✅ You only have 45 days to identify a replacement property and 180 days to close—miss these deadlines, and you owe taxes.
✅ All sale proceeds must go through a qualified intermediary—if the money touches your account, it’s taxable.
✅ The new property must be of equal or greater value than the one you sold.
✅ Financing can get tricky—if you're using a loan, make sure it aligns with 1031 exchange requirements.

Many investors use this strategy to trade up—moving from smaller properties to larger, higher cash-flowing assets without taking a tax hit in between. Others use it to diversify into new markets while keeping their capital working for them.

I’d love to hear from others, have you done a 1031 exchange before? What challenges (or wins) did you experience?