For many, it might lead to longer hold times since the tax deferral incentive would be gone, possibly reducing real estate activity overall.

It ensures that borrowers are purchasing properties that have the potential to cover their expenses with rental income, reducing the risk of default for both the borrower and the FHA.

@Nathan Gesner To build on this conversation and break down the details for Bobby and others (and please correct me if I'm worn here Nathan), I’ve analyzed the numbers and realized that unless you purchase a property at a very low price and/or pay in cash, financing can significantly reduce your ROI.

This reduces exit options and affects the value. 10) Small number of small units is the most expensive residential development there is.

The Legislature's intent was to help prevent homelessness, but I only see this as increasing costs and reducing flexibility. 

When I confronted them, they defended their quote, stating that they go off the industry standard and a portion of the labor time is for "testing the system after repairs to ensure safety."

What you pay with labor will depend on if for instance one of my units still has a good pad and tack and strip then I just pay for carpet and installation cost.What you will pay will also depend on how much you are installing at one time.I don't like Berber for rentals.The design of the loop once it starts unraveling it can unwind pretty good an dis harder to get certain stains and pet stuff out of it.With carpet you want a Nylon carpet even if the cheaper version.Some carpet guys will try to sell you the rubber composite carpet stuff which is the really cheap stuff so it will stand up to tenant abuse.The problem is it can only be cleaned usually up to one time and then you need to replace it again.So I would rather get a cheaper nylon that can be re-cleaned many times over after installation for an additional .10 to .15 a sq ft extra than the super cheap stuff I will have to replace again.If you get 1 sq ft for carpet,pad,tack and strip,and labor install and it is Nylon you are getting one heck of a deal.Even at a carpet place usually you are at .40 to .50 for the pad and .50 to .60 for a cheap carpet.Then you have to do material to install and labor.I have seen sometimes if you have to do a small area you can pick up quality remnant pieces for real cheap and hit that type of number or buy in bulk.

This has allowed me to drastically reduce my fees, and I work with companies that can install in local areas. 

How did you manage or reduce these costs?

.- Diversification:Spreading your investments across different states reduces risk and helps protect your portfolio from local economic downturns.- Affordability:Some out-of-state markets may offer lower property prices, allowing you to get more for your investment.- Higher Cash Flow Potential:Certain markets might provide better rental income, leading to increased cash flow.Cons:- Limited Local Knowledge:Understanding the nuances of a new market is challenging without on-the-ground experience.- Property Management:Managing properties remotely often requires hiring a property manager, adding to your costs.- Increased Travel and Communication:Regular visits and long-distance coordination can increase both time and expense.- Legal and Tax Complications:Navigating different state laws and tax regulations can be complex and confusing.Out-of-state investing can be a great way to grow your real estate portfolio, but weighing the benefits against the potential challenges is essential.