It’s a solid strategy if you stay prepared for unexpected costs and keep some reserves on hand.

Before taking out profits, make sure you have enough set aside for unexpected expenses like repairs, vacancies, or larger maintenance issues.

For example, properties became available at the onset of COVID, during a snowstorm, a hurricane, a major holiday, or after some other unexpected event.

I'm already familiar with some of the basics of how the markets differ, but I'd be curious to hear what some of you have experienced in regard to any unexpected differences between them. 

It’s easy to underestimate renovation costs and timelines, so always build in a cushion for unexpected expenses.Good luck with your first flip, and feel free to reach out if you need more detailed guidance along the way! 

But there might be a supply chain component to it.

It’s about uncovering high-demand niches that hold up even during fluctuations in the broader market.What I’m describing aligns partly with absorption, but I’m looking for a tool that allows me to drill down into the components of that absorption rate—filtering by factors such as the number of bedrooms, bathrooms, home type, amenities, and more.Do you see merit in this approach?

In my experience, it's crucial to be aware of these state-specific rules to avoid unexpected tax liabilities.

If one or more units are vacant, the remaining units often don’t provide enough cash flow to cover expenses, making it harder to meet operating costs.Maintenance costs: A fourplex comes with four times the appliances, plumbing, HVAC systems, and other components to maintain, leading to significantly higher repair and maintenance expenses than single-family homes.If you want to see the detailed calculation, read this BP blog - More Units Doesn’t Mean More Money—Why a Single-Family Home Can Beat a Fourplex.Resale value: Multi-family properties have a limited buyer pool—mainly investors—who base their offers on CAP rates.

The cost segregation studies that typically yield the highest credits and deduction are for properties valued at $150,000 or more or that have lots of added features such as components to operate or high-end custom finishes.