They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).

I still think it is a good area to invest in despite the increases in cost.  

.🔹 Example in Action:Rental income: $9,000PITI: $9,500 → DSCR <1 (not qualifying)Using $63,000 in assets → Adds $1,045 in incomeNew DSCR >1 → Higher LTV (80% instead of 75%)🔹 Why This Matters:✅ Helps investors qualify for better financing✅ Increases borrowing power and flexibility✅ Allows you to scale your portfolio fasterUnderstanding financing tools like this can be a game-changer for investors looking to maximize opportunities.

Hi Jon from Boyertown, PA-You and your fiancé are interested in buying your first short-term rental and wonder profitable areas to purchase with a budget up to $500,000.I would look at places along the west coast of Michigan, Grand Rapids, Kalamazoo, and near Ann Arbor, MI.It is important to understand the local STR regulations in each community and partner with a property management company that can help your navigate that and manage it well for an excellent guest experience.Don't forget to look into bonus depreciation and doing a cost segregation study to increase the tax benefits of ownership and if you "materially participate" in the management of the property per IRS guidelines it can offset active W-2 income which most real estate cannot.To Your Success!

Develop your negotiation skills so you can secure better pricing, seller financing, or terms that increase your bottom line.

If we can complete projects faster, we increase IRR and build trust.3) Market Risk- The longer it takes to complete a project, the more exposed you are to market fluctuations.This goes for all things Real Estate - BRRRRs, Flips, New Builds, Rehabs, etc.Real Estate is a wild ride I feel your pain, I've had this happen many times where the project is twice as long.

There will be no assessment for increase in taxes or insurance so remains at $1935.

What the investor will have is a long term appreciating asset; that will provide an increasing cash flow as rental rates increase, and steady amortization as the note is paid down.  

Given his spending habits during his first term, it might be a wash.Costs to build new properties will probably increase.

We are asking the current tenants to leave as the property is not in optimal condition we like to have our rentals and we would like to fix it up to increase value and rents.