For example, say you qualify for a $1M loan today at a 4% rate (PI = $4774) ... well, if rates go to 5% (and nothing else in your life changes), you'll only qualify for a $900k loan (PI = $4831).If cash flow is what you're focused on, just make sure you're watching rates at the same time as prices when you're looking into that crystal ball...

The contract was also crystal clear that I would deduct any and all fees from the escrow holdback and then he would get the difference after he moved out.PS, have a lawyer draft this for you since you need to comply with landlord-tenant laws in your state and there a lot of moving parts to this sort of addendum.Final thoughts - I love offering this option to people when buying a house.

And realize there is no crystal ball as to what is to come.

After you decide, I would build a team and start looking for a  property that fits your crystal clear criteria.

Forget why or our crystal ball views.  

@Dimple Gajra no one has a crystal ball and part of the risk we take as investors is market timing.

I have 3 STRs…Gatlinburg - 2/1, Blue Ridge - 3/2, Crystal Beach - 3/2

Whoever inherits the property and it might be stuck in probate for some time especially if there is not a crystal clear will with a path to clean title

My personal opinion is to form the LLC especially because you have multiple people involved, so that you can have a crystal clear operating agreement and everyone knows their roles and responsibilities. 

I don't have a crystal ball of course but we've got a lot of factors in our favor here.2) Whether or not it is wise to purchase a commercial warehouse here is going to be highly deal specific and I don't think we could provide any substantive feedback until you have more information or a deal-in-hand.