This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

UDFI typically arises when debt is used to acquire or improve income-producing property, and the proportion of income related to the debt can be subject to UBIT.

Agree that 8-12% is a solid range, but also want to add that what is 'good' is relative to what you can get elsewhere.

If the house is in a relatively large market, then it does not matter whether lender is local or not. 

Is there a side hustle (outside of being a landlord.) related to real estate that you would recommend? 

The size of your tax return, whether it’s 250 pages or more, doesn’t inherently increase your chances of an audit.

Then a wise man who was already successful doing what I wanted to be doing shared some common sense that I took to heart: settle on ONE strategy to get started and block out all the other noise, the BS, and the well intentioned but misinformed friends and relatives telling you that you can’t do this.

Boom, you are now a real estate investor.Oh and definitely build a corporate web of at least 5 layers of shell companies before you even begin thinking about buying a property.  

This is the best place for all things real estate related.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.