Obviously the tenant hope of bringing in more occupants (and sharing more common area space/bathrooms as a sacrifice) would be to lower the rental cost per person.  

There are probably many posts that contain similar information to this one, but I thought it would be of value to future and existing investors who are starting their journey.We recently completed rehabbing a duplex we bought for $93k and rehabbed for $75k (in retrospect, we could've negotiated a lower price 🤷‍♂️ - discussion for a different post), hitting an ARV of $190k when our target ARV was $170k.Two things that stood out for me that helped us secure a higher ARV that anyone can use in their next BRRRR were:1) Fix the property to be in the top 75th percentile -> To improve our success rate, we consulted with both our agent and our PMC on what kind of materials and finishes the best properties (highest ARV Comps and Rent Rates) had in the area.

Lower-income renters tend to generate significantly higher maintenance and turnover costs.

My guess is these are properties in lower tier neighborhoods.

Tax loopholes are provisions in the tax code that allow taxpayers to lower their tax liability.

I heard about setting up a LLC out of a state that has lower taxes than using your home state which may potentially has higher taxes.

I'd work that with them to get a lower than market interest rate as well so that you can cash flow higher.Also, sober living is more risky of a business.

I am also a veteran if that is relevant.I was told I needed to speak to a tax attorney to lower it.

In these conditions, investors typically focus on faster, lower-cost flips that add clear, high-value improvements without overextending time or budget.

@William Coet it’s a different business model altogether.I love highly desirable areas that attract highly skilled high income college educated workforces.They tend to be more liberal and therefore the landlord tenant laws.The percent of their income that goes to rent is typically much less than 20% so a rental increase of 5-10% is nothing to them.They are typically lower cap rate areas and therefore every dollar of net operating income that is earned is explosive to the underlying asset value.