@Rene Hosman the answer is a bit dependent on what your future uses are.

Then it would help if you still had more to set aside for future vacancies and capital expenditures.

Are you giving them the promise to use them in future deals where they will earn 3%?

In our observations it's because most tenants live in the moment and do NOT prepare for the future.

More so just heard that if you transfer title into LLC it can “uncap” the property and cause a new tax assessment the following year and raise your future tax expense.

Hi,People always talk about how they purchase a rental property, wait a few years for it to appreciate, do a cashout refi to recoup their initial down payment, then whatever they earn in the future is infinite return.But in reality, how is this truly a "recouping of initial investment" when you have to pay a 4.5% interest to take out the cashout proceeds (with $3000-4000 of closing costs on top)?

You need comps to get a value not improvements.Second I would advise against a 15 year it will make it harder to qualify for future loans.

Do you have any current/future investment opportunities Sam with Whitehaven?

Should you need a fund for your future deals, feel free to DM me.

Back then, BRRRR worked because we could predict future outcomes with some certainty—what a property’s value would be post-rehab and how the refinancing terms would look in 6-12 months.