Evictions, resident's passing away, posting notices, doing preventative maintenance walk throughs, resident complaints, neighbor complaints, skips, move outs, turnovers, emergency maintenance, etc.I used to be strictly on the ownership side, from 2016-2020 I hired property managers.

Which if youve done flips , but not commerical multi before, you wont miss much,  however a 6 fam is a commerical code permit so there are slight variations between the residential code for essentially all trades which if you dont have a detailed plan and you dont double check every code before you do anything but rely on cheap labor to do your due diliegence for you, what could go wrong ? 

In our24 years of experience, managing almost 100 S8 leases currently, the average S8 tenant has a FICO under 580, numerous collections from utility & cell phone companies, doesn't want to pay a security deposit, much less an application fee and claims they don't know how to fill out their S8 paperwork despite being in the program for several years - hint: they want YOU to do it for them.Most, not all, are eligible for government assistance due to a funeral-march of bad choices.REALITY: you are trust trading one set of problems for another.You can succeed with S8, but you need to understand the challenges and plan accordingly.

One-year leases are very common in smaller spaces, as you're most often working with tenants in the trade industry that need a garage styled space for tools and equipment, some with a small 1-person styled office adjacent the shop.

The CRE lending market is expected to recover gradually, with opportunities emerging as interest rates stabilize and maturing loans drive new borrowing activity.Some regional banks are certainly struggling while others are consolidating in bid to become national powerhouses.Revised CRE Lending Projections2024: 26% growth to $539 billion (down from previous 34% growth forecast)2025: 23% growth to $665 billion (slightly lowered from 24%)Multifamily Sector Adjustments2023: $246 billion (49% drop from 2022)2024: 21% growth to $297 billion2025: 31% growth to $390 billionMarket FactorsRecent moderation in interest ratesSignificant number of loans maturing soonProperty owners hesitant, hoping for further rate decreasesUncertainty persists in the market, particularly regarding interest rates and property owner behavior.

Yes, I can take cash out and try to invest in higher return projects, a sort of carry trade, but the reality is that increasing return on equity generally involves more risk. 

The easiest way to understand why is to ask yourself how mortgage rates have been able to move down by more than 1.5% since late 2023 despite the fact that the Fed never cut rates during that time.The same principle works in reverse as well, as seen during the massive rate spike in early 2022 when mortgage rates moved 1.5% higher before the Fed ever hiked.How about an example from the last time the Fed actually cut rates in a non-emergency scenario?

-Be able to turn your phone off because your voicemail lists an emergency contact for your on call plumber/hvac guy.

I'd appreciate your insights on balancing the trade-offs between initial capital outlay, monthly cash flow, and potential returns.Thank you for your expertise,Ricardo

Huntsville, Alabama, is rapidly emerging as a top real estate market in the South, driven by its growing population, strong economy, and affordable housing options.