Ensure that the savings from the new loan outweigh the costs of the prepayment penalty and any closing costs involved in the refinance.6.

Look for one that includes a training video to ensure you understand how to best use it.

The property is a duplex with an ARV (after repair value) of $700,000, making it a strong deal.However, I want to ensure I’m not overlooking any potential red flags.

The time it takes for the draws from tenants and then the ACH transfer to you leaves you getting pain on the 7th or 8th of the month, the $1 ACH transfer fee is an annoyance that has drawn some complaints that are as petty as the fee feels, the new tenant application features are sub-par, and I'm not sure how well it properly informs tenants of the additional charge for credit cards as I got panicked texts about the added fee from a tenant already going through some hardship.

Some BRRRR Nuances:Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.

This significantly lowers the cost per door and improves your return on investment.Scalability: A three-story walk-up design allows you to maximize your build cost and land use, just like most professional apartment developers do.Control with New Construction: Starting with a new build ensures fewer risks, as you’ll have control over the property’s condition and avoid surprises from existing structures.Pro Tip: If you do go with an existing property, make sure to thoroughly vet the deal to avoid hidden costs and issues.For first-time investors, multifamily new construction is often the best way to scale quickly, reduce costs per unit, and build a sustainable rental portfolio.

Have a conversation with your property management company well in advance of any transition to ensure you are fully aware of all terms and conditions.

Working with vetted, trustworthy borrowers and maintaining a robust vetting process will help ensure your capital works as hard as you do!

Avoid rushing into a distant market without proper research or a trusted team—it’s a recipe for setbacks.

Yes, you will likely pay close to or at retail value if you are buying a quality property that has been properly renovated.