My focus has been taking abandoned properties and renovating to rentals, both short and long term.

These loans are short-term as you mentioned, typically 12 months, so you'll need to refinance before that balloon comes due.

Prepayment penalties- usually 1-5 year terms.

It seems like location would be especially critical with pad-split (and similar systems), but I’d love to hear your thoughts on what to watch out for in terms of zoning, safety, or demand.Also, I’ve traditionally rented out units the regular way, so I’m curious how screening tenants works for you with the pad-split (and similar) model.

When the housing market became seller friendly, I unloaded 5/6 of our long term rental units, paid off our house with that and invested in stocks and mutual funds…completely no fun, right??

Hi Robert,Given you are looking to buy another rental (long term), a cash out refinance on the existing property would be a good play here.

A good property manager can help with tenant screening, enforce lease terms, and handle evictions more efficiently if it comes to that.Require a Larger Security Deposit: Within the bounds of local regulations, a larger deposit can provide a cushion in case of damage or unpaid rent.Consider Rent Guarantee Insurance: Some companies offer insurance products that can cover lost rent in case of tenant default.

While I don’t own investments there, I’ve explored the market and see potential for some long-term growth.

How much net profit in general should I look for on a long term buy and hold rental property like this?

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