I talked to 6 people this week who went out of state for more cash flow and are dealing with negative cash flow now (properties looked good on paper but maintenance, repairs, capex, tenant and PM issues have caused significant losses for them in reality).

We have worked with several clients who have used the FHA 203k refinance program and a golden ticket when you can work through the challenges of paper and confusion if you don't have the right team that has done them before.If you need some insight or feedback on the renovation portion or some lending referrals...I  am happy to help!

@John Acheson Who cares if the property value falls on paper as long as the rent checks keep coming in.

…no maybe I will make a profit as the house appreciates”..That might work for high tolerance risk takers in a hot market …So back to step one… DEALS COME TO ME…. sure after time and cash investedSo I am ok with paying for a whole sale paper flip….

Understand the relationship between cheap, inexpensive properties in crappy neighborhoods that are so attractive to new investors because of their affordability and the poor quality of tenants that such properties bring who can damage your property and stop paying rent turning your paper profits into losses.

Make sure everyone is at least 20% members but that will create the umbrella necessary to get everyone “credit” on paper and allow them to start their investment journey. 

@Sam Deb, on paper that looks great no doubt.

I have accumulated paper losses (e.g. depreciation) I’d like to use to offset my spouses W2 income.

I would also ask the PM what is their process to verify that the ESA Letter is legit and not some piece of paper they paid $49.95 from online.

the deal works really good on paper , its not in a bad area its actually in a decent little community with a k-5 across the street and all that. neighbors are cool too . just met them yesterdayPretty much all systems are go , the wife is on board, the price is right , otherwise a great deal but these weird things the guy that built it chose to do..