The other way I fund deals with none of my own money is using a private lender that I have years of experience and relationship with and/or using HELOC and other business lines of credit.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

Quote from @Jimmy Lieu: Quote from @James Wise: Quote from @Jimmy Lieu: Quote from @Alex Clark: Looking to buy a property in OhioHi Alex, I'm very familiar and have worked extensively in both markets.

Some general pros v cons - I'm sure other people will provide other insights as wellPros: -Above market rents- Monthly rent payment on time that you don't have to worry about or chase anyone down for (if full pay)- No shortage of tenants depending on your standards - Tenants are incentivized to not trash/destroy the unit, otherwise they'll lose their voucher (Yearly inspections made by local S8 inspectors to keep everyone honest- Rental payouts are normally adjusted 1-2 times a year to keep up with market rentsCons:- May take a little while to get onboarded - dealing with local govt can always take longer than expected   - Generally won't have a super high credit score (to be expected given it's the govt paying for rent)- Each unit will need to be inspected and meet a certain living standard in order to be approved for fundingYou'll want to make sure you work with a property manager who has extensive experience in working with S8. 

They both have extensive experience in Duluth.Thanks for the mention @Tim Swierczek.

I work with several private & hard money lenders who specialize in funding BRRRR projects and can offer more flexibility and quicker turnaround times than traditional banks.

I'll send you a private message

I forget It was likely a mix of private and traditional loans I just don't recall to be honest nothing illegal. 

They obtain and manage capital, whether it’s private equity/debt, bank financing or personal capital.

With flexible terms and fast closings, private lenders make funding accessible to new and seasoned investors alike​​.Plan for Property Management: Whether you manage it yourself or hire a professional, ensure smooth operations by setting clear systems for rent collection, maintenance, and tenant communication.