Originally posted by @Kisa Adderley:Rain City Capital only charges 8%.We currently have 3 flips with ES & 1 with RC. 8% is certainly easier on the wallet.I think you mean Magnolia, which shares similar ownership to RCP? 

If you have no “reserve” capital, it can be nerve racking.  

Hi Ann, like you, when it's my money or my responsibility, I'm a controlling type as well, but where you might walk away only giving suggestions, I sometimes hang around longer....The problem is that if you have say XYZ Mortgage or XYZ Capital Lending as a lendinging entity, making loans, you're considered a lender, not a real estate partner investor.

While buying with cash provided some advantages, it tied up a significant amount of capital that could have been used elsewhere.

If it’s not their primary, that’s still how I would handle it as they’re going to owe depreciation recapture even if the IRS lets them out of the capital gains.

Depends on how much capital you're trapping to generate that return. 

However, the BRRRR strategy (buy, rehab, rent, refinance, repeat) makes sense for a lot of investors, as value can be created through forced appreciation (renovations) and capital recycled through cash-out refinances.

It's owned free and clear no debt but has taxed my expendable capital.

We could offer $210,000 to make it a 1% deal, but I understand that the seller paid for the rehab, would have to pay capital gains tax, and closing costs.Based on the info provided (potential rent roll, the fact that it would be a house hack, and the appreciation potential), what do you think a reasonable offer price is to get them to sell a property they recently bought and put money into? 

Hey James,I think as investors/builders/syndications/and developers build new properties they have to put up significant capital.