Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

For this being your first project and it being around two years, you want to underwrite in a way that minimizes your risk and maximizes your cash flow.Key Considerations for Underwriting This Deal1.

If the investor is actively involved and can stay on top of materials, roll with it!

Personally, I would never invest in a place I didn't even visit and also meet/interview the people who would be involved (agent, manager, contractor, etc.)

Hey @Matthew AllenIt’s a creative strategy that could work in the right circumstances, but there are some risks to consider.

If other people take aggressive positions and gain or lose money that is their risk assessment.  

I’ve been involved in real estate investing for over 30 years, so if you ever have any questions or need guidance, feel free to reach out.

Investing in multifamily properties offers steady cash flow, diversification, as multiple tenants reduce vacancy risks and provide consistent income.

Hi EdwardThe main benefits of section 8 include guaranteed rent payments from the government, which can provide a steady income stream and reduce the risk of vacancies or non-payment.

And lastly, market risks and mismanaged funds can also create major headaches, especially for those involved in lending groups.