If you vet tenants properly, you will have few problems in any state, barring loss of jobs.

I do know people who have done it but they have enough money to take the loss if it should occur.

Yes, that's going to make it a lot harder to find a deal that works, but better to do that than realize you're underwater on something.And if you happen to expand your search and are open to Detroit, I'm happy to share more info on that market.Hey mate, we did the same as you guys when first starting and even ran it at a loss for many years.

Since it won't be cash flow in this condition and may run into loss it may offset my rental income but hoping to build equity and have another investment in my portfolio.What would you folks suggest?

Given that you have no income, and it's likely you may not meet the material participation threshold for 2023, the loss would then be kept on form 8582 to be used to offset future years of income from the property in the form of a "carryover loss"

The property obviously cash-flowed although not as desired.Kelly ReviewMy experience: Bought: March 2021, $64,900 Sold: April 2024, $48,500 - $5,000 (agent fees/closing fees/etc) = $43,500 Rental income (rents - expenses): $5,600 Average annual returns: 2.9% (approximate) Net loss at sale: $15,800Positives:It was turnkey, but: a.

The insurer says that the CC on file keeps getting denied.The borrower is failing to respond to calls/texts/emails/letters regarding the situation.The mortgage that was signed/recorded permits the lender to recover any charges associated with the need to apply this type of insurance policy, but doesn't specify how those charges are to be recoveredIn this example, the annual premium for the FPI that I (Lender) paid is roughly $1000.

The negative value with respect to the cost of building is such that it can consume years of cash flow to recover.  1) The value added by the ADU addition is often significantly less than the cost of adding the ADU.

Once you give those notices, you typically start an ejectment action instead of a foreclosure action to recover a possession.

If not, it should have been part of your due diligence to request a loss run report.In any case, if the building is good and your property inspection report is good, and the price is right, just close the deal.