Residential property rental: Could this be a scalable and profitable approach, or is it too risky?

Higher ReturnsCo-living generates up to 5X the cash flow of a traditional rental.

Quote from @Devin James: In one of our development projects, the City staff asked us to remove 40 units from our concept plan.This wasn’t requested by the City Commission at a formal hearing, it was the opinion of the staff.Our original concept already proposed fewer units than the current zoning would have allowed.Here’s what erasing 40 units means:- 40 fewer homes for buyers- Over $1M in lost profit for our team- Fewer tax dollars and impact fees that could’ve benefited the City’s infrastructure & servicesWe gotta get betterEveryone wants more affordable housing, but not everyone wants to do what it takes to achieve it we never listen to the recommending bodies. we move for city approvals and work closely. the other thing we do is keep going back to the same groups over and over and over and over every month on the same agenda and make very small reductions like 2% or 4% and that reduces and beats them down eventually they accept what you want. it's just before beating a dead horse. we keep tabling until they give us something we all agree on then we go to vote. in our city in columbus we have to get recommendations but that's our strategy. we used to come out as aggressive as possible. we typically study developments in the area and keep it very similar in terms of density. we have a track record of very controversial projects and litigation and not taking no as an answer. after a year of that haha I can tell you it's not worth it. now we are more relationship based and buying the right kinds of plots of land. if the numbers don't work on the front end don't do the development. 

You need more than a pretty space—you need profitability.3.

One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.

Purpose of the fund: To purchase old land, rezone, demolish, and rebuild homes to sell at a profit.

The very tragic LA fires have generated a lot of discussion about insurance costs.

However, employer profit-sharing contributions (up to 25% of W-2 wages) are not subject to FICA taxes and do not appear on the W-2.To stay IRS-compliant, ensure your Form W-2 and Form 941 properly reflect deferrals, and maintain a reasonable salary to avoid red flags.

Unfortunately, such a funding option is not generally available for commercial properties, unless your LLC or Corp that is the borrower has other "unencumbered" assets that can be leveraged to generate the funds you need. 

It's not quite as profitable as doing AirBNB yourself, but at least it's a stable income.