While I want to maximize profit, I also want to keep my properties stable.

I currently reside in CO so looking to invest remotely.ThanksHey Matthew, BRRRR investing can rapidly generate profits but I'm gonna be honest, you need people you can trust especially in a place like Cleveland.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

I typically sell single family houses as Turnkey's to investors from California and to offset the profit by buying into an apartment complex to get the tax write offs makes a good deal of sense.

Prior to the 1986 Act, real estate investors were able to offset their rental property losses against their active income including w-2 earnings and profits from businesses.

Operating Agreement: This document should outline each partner’s investment, share of profits/losses, decision-making authority, and exit strategy.

This can increase your profit margin by avoiding platform fees.

Keep this in mind when going the VA route for management.2) If a deal breaks/is no longer profitable because of Property Management Expenses, it might be best to find another deal with bigger margins.

We are taking over seller payments, then renovating and sharing profits with the owner. 

It’s important to balance cash-out refinance with maintaining healthy cash flow from rent.Mismanaging the Rehab Process:Delays in the rehab phase can eat into your profits.