When considering refinancing, also factor in the closing costs of the new mortgage to determine if it actually helps you.

Insurance is just an expense to factor into your underwriting just like property taxes.

Rental competition seems like a big one, but I’d love to hear how you weigh other factors too.Thanks again for sharing your experience—it’s really helpful!

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

Are there any key factors or metrics you look for when analyzing a neighborhood's potential?

Before finalizing a decision to sell, I thought I’d get some thoughts from the BP forumThe only obvious factor I know to try to head off a problem is to carefully screen applicants.

@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

That is another factor that a bank will consider. 

The systems you have in place to handle leads, follow-up and your sales processes are also huge factors.Another factor is what is your monthly marketing budget?

For live-and-flips, factor in holding costs, renovation contingencies, and resale value.