High taxes.

Hard money loans offer fast approval and don't risk personal assets but come with high-interest rates and fees, which can be tax-deductible as carrying costs.

Hello @Yooni Choi,While managing an out-of-state rental property yourself might seem like a money-saving strategy, the reality is much more complex.

Steve if you can go without buidling the extra garage below the ADU it will save a lot of money. if you can get two studios it will do much better than one ADU.

At a high LTV your leverage will be magnified.If your cash flow really is break even (I have my doubts) then with the magnification resulting from leverage, you could produce a fairly good return (ROI from leveraged appreciation, equity pay down, tax benefits).Good luck

@Pratik as @Neil Narayan mentioned, cash flow is very challenging due to the property values, property taxes, and soft rental market.

There are auctions to sell cars, police auctions, tax impounded auctions, antique auctions, etc.

I also want to learn about purchasing properties with tax liens / bankruptcies / foreclosures.1.

Bear in mind that the fiscal treatment of the two options in Mexico is different (withholding tax on the gross income with the fideicomiso vs cost deductions with the corporation).

I still have enough room with my VA entitlement for a buy and hold in a couple of years, so I'd rather save it for later!