It’s a tried-and-true way to build long-term wealth, with tax benefits like depreciation and the ability to leverage financing.

Financing the deal with cash and a loan from your brother helped you avoid traditional loan costs, which likely benefited your margins.One key lesson you’ve pointed out—always buying low and, if possible, getting an inspection is something that can save a lot of time and money.

: If you’re planning to hold the property long-term, the repairs may not be as concerning since you’ll gain appreciation over time and benefit from consistent cash flow.

There are just so many benefits to using an agent and letting the builder pay their fees. 

@Fernando GuzmanFor Property 1, the $1,000 monthly negative cash flow could limit your growth, despite the tax benefits.

I've had a chance to adjust these since talking with someone else, and I'm definitely NOT doing a HELOC and a Hard money loan.  

Hopefully your properties can benefit someone else. 

If you wanted to be super careful you could have an attorney write up a new easement and record it for the benefit of future owners of both properties. 

For future reference, the agencies will often adjust LTV/DCR by -5% LTV / -.05x DCR for loans involving new agency borrowers with minimal experience / like size AUM / etc. 

Have you considered any specific strategies for tax benefits in your next investment?