diversification and cash flowSan Jose, CA has been very appreciation heavy... and i'm not opposed to keeping some property here, though the multi-family / commercial real estate has very low cap rates, and low growth from what i'm seeing.

Interest rate is 6.3 and cash to close was $23,500.00 due to higher closing costs with DSCR loans.

Quote from @Tyler Kesling: Thanks for the insight @Randall Alan on how current owners and markets might react to the ease on rates.

One your loans will be a higher interest rate, next you will have annual filings, the cost of a registered agent every year, and items like that. 

😳This is caused by a combination of buyers not being able to afford to buy with interest rates back up above 7%, and seller’s not wanting to budge on their sale price...a standoff.My guess is 2025 will likely be just like 2024 and 2023 if rates stay above 6%....

Seems to be in line with market rates. 

Here’s the bottom line; unless the deal is VERY large, or the sponsor is going to syndicate a large number of deals, the investor will make more money purchasing the property theirselves with a option low to moderate interest rate loan.  

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

Also, the vacancy rate was understated.  

They recognize the buyer can destroy the seller credit, but they are in such dire straights that the risk is justified 2) the seller knows the buyer and has so much trust in the buyer that they have every confidence that the buyer will perform on the loan.From a buyer, it provides a means to get an interest rate from NLT q1 2022 that is a fraction of today’s rate.