With the lower LTVs offered by senior lenders these days, it may be tempting to look at preferred equity and it may make sense since technically it is cheaper than LP equity, but also keep in mind they have a higher liquidation preference (obviously) but will often want all the cashflow (or a majority of it) to come to them before the LP investors and will also want large reserves, so make sure you model out the cashflows and understand the end-to-end deal with the preferred equity investors.We have some institutional investors with whom we did a combination of a pref and JV deal and it worked quite well for everyone including them and the LP investors.

If you can identify those “up-and-coming” neighborhoods, the return on investment can be quite solid without having to sacrifice quality.PS: Fun fact—Kansas City was recently ranked as one of the top cities for real estate investment due to its strong job market and affordable housing prices (source: Forbes 2023).

As others have pointed out the technology that exists in the space makes communication quite frankly one of the easiest parts of the business at this time and tenants as well as clients have grown accustomed to having quick and efficient communication options at their disposal. 

Hey @Dennis Smith, there are a quite a few posts on BP here that have talked about mid term rentals.

This is a very technical question and most tax advisors might be hesitant to address it here not because they don't know but because it requires quite a bit of additional information.

Rental comps vs mortgage not quite giving positive cash flow with high rates.I also have areas like memphis, columbus, oklahoma in mind but haven't done thorough research on these so far.Can anyone advice what other areas (or best from the above list) to look for within my budget and goal in mind.Appreciate any pointers and happy to connect with local agents/investors.I am interested in investing in Columbus.

@Nia Booker, even though you explained things to the best of your ability I still don't think you quite know what's going on with your situation.

I have been reading quite a bit about the growth that Polk county has experienced, particularly in the aftermath of the pandemic.

If you are good at managing a budget I think this is fine.I agree, especially somewhere that is barely habitable those other 6 months, which describes the UP of Michigan quite well.

We tried to buy some foreclosures from the bank some time ago without success because quite some time the municipality holds the right to be the first buyer and purchase the property for the price you agreed it to buy for.