I got a deal on labor as I know the contractor personally and helped out a bit with the project.

Some take on the business w/o having the proper systems in place to deal with low-demographic tenants & properties.We also see owners being part of the problem - expecting Class A fees, service & results from their Class C & D properties.

I pay about $2500 a year for each of my partnership returns with my CPA regardless of whether it’s a $1M deal or a $5M deal.I would save the partnership conversation for if and when you are doing much bigger deals.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I can check in with my local bank, but I don't want to waste their time when I'm not yet serious about doing a loan with them.   

So, I'd look to the other properties and ask whether the ones on the street also had only street parking versus access to a driveway.

Your ability to accurately estimate costs and efficiently manage renovations makes you an extremely valuable partner in any deal.

With the amount of support they provide I am not against settling for an 8/10 deal. 

If anything goes wrong, the entire deal comes crashing down.

Hi everyone,I’m curious to know how others in the community handle gap funding in their real estate deals.