Hey All, I saw this post recently about Home Builder Inventory being high, showing signs of a recession coming.

Many investments that seem to promise higher than market returns do so because of higher than market risk.

Many CPAs charge $500-$1,500 for a rental tax return.3.

You will want enough return for the deal to support itself or you won't be able to scale well.

Lots of factors, but deciding factor was what what Torren described (waterfall highly favorable to GP).

@Ty Coutts I agree it's to high , searching for new lenders or PML , I didn't account for maintenance because it was basically a full gut , everything is brand new. 

In this guide, we’ll explore high-yield property types and help you decide between long-term and short-term rental strategies to maximize returns.1.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

I flip with cash, not loans, mainly because there are not enough deals out there that meet my highly selective acquisition criteria, so no need to pay interest on cash otherwise sitting in a money market account. 

Not too bad when the inventory is low, the number of sales is low (like a 30 year low), interest rates are high and prices are high.