If your rental income increases faster than inflation, you will have the additional dollars you need to pay inflated prices.

I've already renovated one of the bathrooms, and I’m planning to paint the interior, update the kitchen cabinets, possibly sand the wood floors, build a fence is a corner lot and increase the rent for the room since my tenant is currently renting the entire 3-bedroom, 2-bathroom house for $800 a month.

But Metro Phoenix is a leader in rent increases.

However, if you have the time and prefer to source properties on your own, I would highly recommend the following strategies:Connect with probate attorneysVisit property auctions: These happen monthly and, surprisingly, aren’t saturated with investors.Cold callingTarget LLC owned properties: Over the years we have seen an influx of companies purchasing SF for rentals/long-term holds and they failed to account for property taxes and an increase in new construction coming to the market.

Since you know who you want to serve, try to tailor your listing to make it easy for them to say, "yes".General advice: MTRs are attactive to a lot of people because of the increased cash flow, but it's the appreciation over time that really generates wealth in real estate.

I would caution you against increasing the down payment to make the numbers work.

What is the best way to increase deal flow with multi family off market properties?

The shorter the prepayment term has an impact on increasing the rate.4.

I ran the numbers on the deal knowing that I would break even on cash flow in the first year with minimal rent increases but significant cash flow in year 6 when the 401k loan is paid off.

As a result, you might end up increasing your taxes by delaying income and accelerating deductions.Did I miss something?