In July, the U.S. commercial real estate market experienced mixed results, with property price gains slowing, particularly among individual investors.

Insufficient reserves result in vendor bills piling up, value-add strategies running behind schedule, and returns being reduced, so it's important to have a clear picture about how well capitalized or undercapitalized a deal is so that you can truly assess the risk.

As rental rates progressively outpace expenses over time, the growth in cash flow can provide a reliable income stream.In line with my investment approach, I focus on these three key metrics when conducting property analyses:Initial Equity at the End of Year One:This equity can result from either a down payment or improvements made during a rehab phase.

So, I call on the phone, get instant results, or I send an email and I always get an email back a few minutes later.

The combination of high price and a doubling of the interest rate results in high cost for financed RE. - Rents have not and cannot keep up with the cost increase of financed properties. 

When you factor in the tax deduction you get on the mortgage interest, this 5% rate on a CD closes matches what you would save on interest by paying down the mortgage.

This is particularly important in areas with rent caps because you can suddenly find yourself well behind market values for rent.As for how much, that depends on your market and what rents are in the area. 10% is a lot and you may have tenants move as a result. 

The property’s value could be significantly increased with relatively minimal renovation, making it an ideal project for Partner Driven to take on and deliver strong results.

Although my cost of capital was cheap (2.5% 30yr fixed), the increased STR supply resulted in a more hands-on approach by me (better marketing, improving the quality of my check-in hose, services, etc) and this wasn't turning out to be as 'passive' as I would have liked (I've been managing my own LTRs for close to a decade, so perhaps I'm spoiled).

However, failing to pay the tax could result in a lien against my company, complicating the approval process for a mortgage and incurring an estimated $10K in penalties.