@Kyle LipkoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Quote from @David Cherkowsky: Quote from @Sasha Mohammed: Hi David,There are lenders that will allow you to purchase via a DSCR loan using STR income to qualify.

.-- Or, what we do is offer the free rent AFTER & ONLY if they pay their first 3 months of rent on time to earn it.4) Lower the rent 5% every 2-4 weeks until activity picks up.5) Understand this is the worst time of year to find tenants.-- Starts picking back up end of February when this tenant pool starts getting their income tax refunds and aren't broke anymore.6) Section 8: where is the property being advertised?

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city).

If your goal is passive income, it's not going to be in New Jersey when you factor in cost to purchase, management costs, and rent to price ratio, but what you can get is steady appreciation.

With a fideicomiso, the gross income is taxed through a withholding tax whereas, with the corporation, the rate, you can deduct expenses but the taxation rate is higher.

It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service.

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

Things that could get in the way im putting out there now to make sure no surprises after someone does the work to get me quotes- New York State - Appraisal will barely be past 100k if that- 98% of my income comes from my rental portfolio (thats a new fun rule (to me) I just learned about)- Prefer something without a ton of fees and such.

Setting rent significantly above FMV could be seen as an attempt to shift income or inflate deductions, leading to potential penalties.