I know most of us here know these definitions, but just to make sure we are all on the same page.The main negative with MTR arbitrage is that since you do not own the unit, you get none of the benefits of being an owner.

Always consult your own tax professional.Starting concept: net incomeBusiness are taxed on net income, not gross income.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

BP is a great place to get started.An A/B class property in Cincinnati will be cashflow negative for the first 4-7 years.

I think that's the concept you're asking about.

But agreed it would have been challenging and negative to pursue- and not worth it.

That will have negative tax consequences.

The negative CF hurts but how much equity is created remodeling this property?

@Maxwell Hinesmakes no sense - you'll be negative and never be able to pay the HELOC draw back with the cash flow you don't have from the house

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.