Hi @Christopher Murphy, first, thank you for the bio. I love when people share a little personality. I, too, am a young guy but I am on the lending side of the business.
With that being said, I agree with you, many lenders are terrible. Since you are quitting your current W2, you should look into DSCR options for future real estate endeavors. It does have a higher interest rate but it has far fewer restrictions.
There are a few issues with rental arbitrage:
1. Many landlords do not allow it.
2. Many jurisdictions do not allow it.
3. Your landlord or jurisdiction may allow it now but may change their mind at any point.
4. Lack of equity growth.
5. Uncertainty. You might not make enough to cover rent for one month and need to come out of pocket or an STR tenant might cause damage to the property that causes you lots of money.
As long as you plan for these and are prepared for the risks, you should be fine with this strategy.
Seller financing is a better long-term play since you get equity growth, stronger certainty when it comes to legislation, no uncertainty with landlords, etc.
You seem like you are well on your way to a real estate empire. Would love to connect!
