The property cash flowed roughly $250 a month for 3 years and sold for a profit of roughly $80K.

This is a new underwriting guideline of the insurance companies because they haven’t been profitable and must raise the rates and lower the risk factors in order to comply with state regulations on adequate reserves and future solvency.  

I would be leery investing in a cash negative property with the only profit source being appreciation.Good luck

, not so much for the profit we are making, for all of the expenses involve that surpass our profit.

My family was an investor in a Corporate Housing designated complex and it turned out to be very profitable.

Quote from @Alex Scattareggia: Is the problem that the property wont be profitable with the 20% management fee taken out?

At first, you won't be able to offset your W2 income with losses, but it is nice when you sell a property at a profit and all the capital gains are wiped out by losses from other properties.A huge amount of tax savings get unlocked if one of you leaves your W2 job to focus on real estate and you get Real Estate Professional Status (REPS). 

This is what I think I know:- The borrower can choose to pay off the note at any time (by selling the property or just paying off the loan with other funds), so it is important that the legal balance covers my investment and some profit- The borrower could file bankruptcy (can someone confirm that this will only cause delay, but not jeopardize ultimately collecting the legal balance of the note)- Most of these DOTs will have a rent assignment clause, so I could try to enforce that and collect rents from tenants (essentially manage the property) while I am holding the note and trying to foreclose.

Will it make a profit?

My goal is to leverage my hospitality background to create unique and profitable real estate opportunities.I’m here to learn from the collective wisdom of the BP community and share my experiences as I navigate this new journey.With gratitude and excitement,