Buy properties (in the path of progress) that need TLC and add value (rehab, raise rents, reduce costs, increase NOI).

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

If I chose to try to find tenants before the unit became vacant I could likely cut down on the vacancy time between tenants and further reduce my vacancy to something like 2% but I budget for 5%. 3.

An S-Corp might help reduce self-employment taxes by allowing you to take a salary and receive dividends. 

Diversifying your investments across different states can also help reduce risk and protect your portfolio.

If I reduce the purchase price to $600,000, the CoC jumps to 15.2%.

With that said, there have been more realistic seller expectations to the tune of significantly reduced purchase prices both pre and post executed agreements.

Highlight the cash flow and equity in your property when negotiating with lenders, as this reduces their perceived risk.Ultimately, you may need to reach out to multiple lenders or brokers who specialize in DSCR loans to find one willing to take a second position.

A good property manager can handle tenant issues and reduce your hands-on involvement.Building a Network: While you don’t currently have local connections, networking with other investors, attending real estate meetups, or joining online communities can provide valuable insights and opportunities.The next steps depend on your financing options, preferred markets, and whether you’re willing to manage tenants directly or prefer to stay hands-off.

This strategy can help reduce utility expenses.Mid-term and short-term rentals can have utility costs up to 10% of gross income, including electricity, water, gas, cable, lawn care, and pest control.