When considering single-family homes (SFH) or small multifamily properties, it’s important to analyze rental demand, local property values, and rental rates to ensure you’re getting strong cash flow potential.

If you don't actually replace the damaged property, the insurer will normally only pay you the "actual cash value," i.e., the depreciated value of the property.

Personally, I invest in properties in C-Class neighborhoods in my market (East Linden and Southern Hilltop), and they’ve been cash-flowing well so far.

That being said, it can be the most satisfying and cash-flow-positive business around. 

Purchase price: $360,000 Cash invested: $75,000 3b2b made into a 4b2b.

While it will not reduce the actual cost it will help with the monthly cash flow.I am curious if this was a single-family house converted into a double.

Purchase price: $172,000 Cash invested: $43,000 We purchased this rehabbed home and added a privacy fence, removed overhanging trees, finished the countertops, built a firepit, security system, camera's, fixed the sidewalk and turned it into an airbnb.

I would recommend sitting down with an attorney so they can outline what the process will be like and their rent for closing the selling and what documents they'll need from you (if any because they can draft them).if you decide to sell to a residential buyer, make sure you're confirming that they are able to finance it or that they have cash to purchase it.

A DSCR refinance can also allow you to take some cash out if you want to use it to put down on another investment property and when you close simply close in an LLC.  

Liability Protection: Transferring to an LLC provides asset protection but may not always be worth the hassle or cost.Next Steps: Review your loan agreements, consult your lender, and get advice from a real estate attorney and tax pro to ensure everything’s compliant and beneficial.