The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

Unless you make the theme of the house around that famous person, I dont think consumers will pay a market premium on ADR to stay. 

You really can't get a better snapshot of the Cleveland investment market right now. 

All these properties were purchased for under 100k (not possible now, we got lucky with the downswing of the market at that time).

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!)

For everyone's benefit, one should note that with the exception of certain areas (e.g.

Separately, the benefits and disadvantages of renting to Section 8 is a topic of extended debate on this forum.

It’s true that many property management companies are now incorporating tenant benefit packages as part of their offerings.

As you're just starting out in Austin, focus on learning the local market, particularly areas with good rental demand and lower entry prices.