Unless you're direct to a seller, you'll often find yourself with tight margins which equates to losing in the end.Here in Texas, I’ve gone through hundreds of deals this year and maybe half a dozen deals were worth the investment.

While they do eat into rental margins the larger profit came from the sale and the added rental profit was not worth the hassle of being a landlord.

The ceiling height of the basement is only about ~6.5 feet, so it's really on the marginal side of livability for most people.

So if you have 100,000 in losses and your marginal tax rate is 22%, then you have $22,000 of tax savings at some point in the future. 

If you are building to sell and your profit margins are higher for the larger units, that may be a good argument for building bigger.My rentals are in central and east Phoenix, so we have a lot of young professionals and small families we rent to. 

Everyone has their own opinion but we have done amazing making these small "margins" work with other people paying down our mortgage.

But on the other hand, I’m hesitant to invest in a deal where the margins are thin initially even if I do plan to re-finance.

I’m curious about everyone’s thoughts on the pros and cons of mid-term rentals versus short-term rentals. profit margin on STR is getting thinner, and I’m interested in exploring other strategies.

I’m not too sure what a good cash number looks like, so please let me know if I should consider rehabbing first to build more liquid cash.To my understanding, I need to have all of my profit margins in place before even considering buying a lot.

I do plan to buy a property with 30% to 50% off and have it "acts" as a margin of safety.