Cost of construction is expensive and about to get worse.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

For example do you have a great w2 and can you afford to cover costs of a major repair or 3 months of vacancy?

I've seen estimates that are off by 300% when all said and done (e.g. the original bid was $10k but the final cost was closer to $30k).

The location all in,cost him X; he got an appraisal for the bank from CBRE national firmof XX and now the firm who called him mentioned paying XXX.

@Loren Souers I'd have to run the specific scenarios with the rates and fees, but if you're OK with paying the higher closing costs, the Mortgage 1 deal looks good, particularly if you focus on CoC returns.

To simplify the scenario I'm envisioning let me put it this way: what does a BRRRR look like when one of the parties contributing to the down payment and rehab costs ultimately ends up being the renter as well?

While the borrowing costs are higher, I’m exploring strategies where the returns could offset this.

Invest in Fix-and-Flip Properties:Use the $50K as a down payment or cover acquisition costs for a non-recourse loan (required for SDIRAs).

It has good integration, is cost effective, and the direct booking feature is pretty good!