By investing in metropolitan areas your yield would be lower (6% to 7%) but you would have a lower vacancy rate.

I've had smooth loans close with Kiavi and I've had rough ones, same with Roc.When Loans start to be troublesome:1) The borrowing entity docs are a mess2) The appraisal numbers are lower than expected3) Messy background reports4) Loans happening in an environment where market/rate fluctuating unpredictably 5) Your loan officer and their team are poor at their job6) Title issues that depend on county docs, that can be slow and painfulThere's more but it's Friday and I'm tired....

Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way downIt’s one thing if you bought a while back like many of us did, so your cost basis is much lower.

When they do, you can refinance to a lower rate.Dealing with current high interest rates (about 7% on 01/27/2025) you have the following choices:A larger down paymentAccept a negative cash flowBuy down the interest rateCombine and balance all three to get an acceptable cash flow today.

Don't go for the cheapest (unless the price is lower because it is on sale), but also don't go for the most expensive. 

There's a lot of suckers who attend these sales, particularly for the lower priced properties and that's precisely who you don't want to be bidding against.

In this market, I would not finance a first time flipper at 75% profit split because the profits and success rate is lower than the last dozen years.  

Just the different brand name lowers the cost dramatically!

Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.My questions are:Is this too naively optimistic?

For $10K and a lower rate I'd be willing to consider delaying...but only if I knew that lender two was solid on closing in a relatively short timeframe.