If any costs go up, developer eats it.

I have been told by many any raise under $50M do a reg c exemption and $50Mmis the cutoff for a reg a+ and $100M for a reit due to setup costs.

Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way downIt’s one thing if you bought a while back like many of us did, so your cost basis is much lower.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

However, opponents argue that privatization could disrupt mortgage affordability, increase borrowing costs, and reduce accessibility to financing for first-time homebuyers and small-scale investors.How Privatization Could Impact Real Estate InvestorsIf Fannie Mae and Freddie Mac transition to private entities, several key changes could affect real estate investors, particularly those relying on conventional financing.

I would highly encourage paying a GC to walk deals out the gate, have them give a scope of work so you can see what items costs.

Less Desirable Areas: Are there neighborhoods we should avoid or areas where BRRRR might be less effective?

Strategies like living in a duplex or triplex, adding an ADU, or renting by the room can help maximize cash flow while leveraging FHA or VA loans for lower upfront costs.

.$8,000 would likely go away in closing costs.

There is extra costs, more regulation, and more liability.