Also, be sure to factor in maintenance and potential CapEx, especially for older properties.

Hey everyone, I just finished developing a detailed guide on how to read and dispute appraisal reports effectively, and honestly, I’m amazed at how often small errors can significantly undervalue a property.

@Merrick Hidalgo If your private REIT investment is returning only 10% of the principal and the remaining 90% is likely lost, the key factor in claiming a capital loss is when the loss is realized for tax purposes.

@Tyler GarzaYour "buy a new house, rent the old one, and trade up" strategy is a solid way to build wealth, but there are a few key factors to consider.

Local PM here - we have multiple development projects we are gearing up to sell, both small multifamily and townhouses should you want to take a peak at them.

@Vincent WeselakIt’s a good idea to get an estimate for your insurance costs upfront since this can vary based on the property type and location, and it’s a key factor in evaluating your cash flow. 

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

But, all of the areas around there are starting to develop as well. 

Heya Ethan.I've completed 7 secondary suite renovations/developments now and it is extremely difficult to do a true BRRRR where you pull every dime back out again after you refinance.

The seller has the two lots legally separated, but due to deed restriction imposed by the subdivision development, found that building a house on the “tennis court” lot was not allowable.