If Someone came to you and needed you to funnel them deals having that expectation talk is super important because not every investor needs the same return.

Generally there is a higher projected return for taking higher risk.

Quote from @Luis Maza: Hi all, returning to the game this year and would like to pick your brain a bit, we started working with a wholesaler that will send us properties here and there with the "wholesale" price, but every time we check the properties and add the numbers, the margins are, well, I am not sure, too low perhaps, maybe we are getting to picky, but this is my dilemma for example...Today we got a property, wholesale price 300K, rehab about 50-60K, ARV is about 440k, but with the cost of hard money, we have about 100k cash, hard money interest at 11%, keeping the property for 90 days while we finish the rehab, closing costs,  commissions, we ended with 30k profit before taxes, while it sounds appealing, adding up all expenses and cost we ended up expending 50K on rehab(labor/materials) and about 50-60K with cost of the loan, interest, commissions, etc, everyone makes money, happy with that, but it seems that we are working to produce a 100k for everyone else, while we make 20-30k if everything goes well...In my opinion, we are not really getting "wholesale" price, it seems that we either buying to expensive, rehabs are much more than we would like to spend and the cost of borrowing that money is too high...We came up with thoughts as: lets fund it ourselves with money from a close friend/partner that we will bring in, and that would save us 10-15k here and there, but still, is that the norm now?

If he has the right personality, he will get a better return with real estate investing.

Quote from @Robert Cucino: Quote from @Tanner Lewis: Those look like pretty solid returns on the surface level, if you decide to go with DSCR, you can qualify the deal with AirDNA projected income even if it is rural. yeah i talked to dcsr lender in area, they do 80 LTV.

Hey y'all, What areas around St Louis are you finding the greatest value on returns?

As of March 2024, this is what I've learned: --> He states he only enters into deals that are projected to earn no less than 25% return, and says he's averaging about 36% return on property investments. 

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

The lower you get down in rate the more that payback has some diminishing returns.

I would always try local banks first but if you are looking to not worry about debt to income and providing tax returns or W2s then DSCR would be your route on the refinance side.