It requires no money upfront, so you will join thousands of others trying to do the same in your market.

Risks: rates go down and you have to pay a prepay of 2 or 3 %; you have to sell and pay the prepay; rents decline & you can't make the payment like any other type of loan; cost upfront a little more than conventional; need to find experienced broker licensed in the state where subject property sits; servicers are bulldogs. 

To estimate expenses, consider setting aside a percentage for management fees, plus costs for cleaning and utilities.

Most cost segregation firms will provide a free cost/benefit analysis quote to help you determine if the tax benefits from the study will outweigh the costs.

My dad and I got caught by that snag on our third flip years ago, and we definitely kicke ourselves for not doing a little extra research up front.

Hey Christian, have you considered house hacking as a way to get started with minimal upfront capital?

I cash flow them to buyers on lease options with a hefty option payment up front to me.

You could negotiate terms such as a lower interest rate or interest-only payments for a set period to ease your upfront burden.Lease-Option Agreement: If the landlord isn’t ready to sell outright, consider proposing a lease-option where you continue renting for a set period with an agreed purchase price.

Is it common for developers to use subsidies to cover 100% of the construction costs without needing to obtaining debt or raising equity?

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates this year).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.