However, if you have a reason to refinance (lower rate, more cash out) then it would be a much safer bet to get a DSCR loan and refinance into your LLC.

Flipping can be cost-effective due to lower entry costs and growth in neighborhoods.

Then I submitted a lower offer of the same ratio as before.

Not only does this lower your taxable income, but it also allows you to support a cause you’re passionate about.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

While traditional banks provide lower interest rates, they come with strict approval processes and long wait times.

This implies residential units can be built at lower costs than ADU additions and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

or an income play which typically provides lower yield because they typically inherently have lower risk

Yes the inventory is much lower than the City, but there are 2-4 unit properties to be had, and with good numbers.

Overall, though the cash flow in my market may be lower, the strong appreciation has made for a higher total ROI and I've continued to buy here.