This is a big part of the problem "AMH, formerly American Homes 4 Rent, grew its portfolio of single-family homes by 8.5% between 2019 and 2021, but its fee revenue grew by two-thirds during this time period, according to the group's securities filings.

We talked to the tenant and offered to help them market the unit for a sublease and in less than two weeks are securing the paperwork for a one year sub with no gap in rent payments. 

By pooling financial resources, we secured the property and funded the $25,000 renovation, ensuring the project was well-capitalized from start to finish.

Quote from @Denise Evans: The law changed it to 4 years after the first auction, or the first sale by the tax collecting official.

Leveraging his local market expertise, we swiftly negotiated the purchase at $190,000, securing the property under favorable terms that allowed us to capitalize on the quick resale potential.

I agree with all of this HOWEVER I will say, if you have a unique product to offer to the market, you can attract even the highest quality tenants in the rougher areas, especially if they are secure properties that are close to downtown.

I am not suggesting you can't be successful building a SFH portfolio and to an extent cash flow is necessary to operate the portfolio, secure financing etc., but SFH's are one of the more inefficient asset classes to own.

Additionally, it can help you avoid the risk of having an offer accepted but not being able to secure financing in time.

You should never ever ever provide a loan on real estate without it being secured.

Owning the property in an LLC does help with your debt-to-income (DTI) ratio, but it can make securing a loan more challenging.