You advertised 9% cap rates, said to expect 7% (I understood and agreed to that), and it delivered 3% over three years.And now, from left field, I have a different real estate investor weighing in.

Quote from @Carlos Ptriawan: also since most of the advice in BP is coming from sell side, the return we got is the normal return hence why I am no longer interested.I am interested to gain abnormal return.my exerience- making 80k-100k per flip from 500k home is possible, only in CA- Out of state could be a good appreciation vehicle too- the wealth builder is created when we invest in expensive state only (CA/HI) with at least two properties- invest locally is thousand time better than investing outside because of the potential it creates- househacking and ADU is finance freedom LOLBut i develop a strong very atypical thesis also:- there' nothing passive about real estate investment- investing in syndication is more active than direct ownership- the risk of the unknown of unknown is the biggest issue in any real estate- at the end of the day, the probability of we as landlord is hitting problem with tenant/city is like 100% so be prepared- the difference between different type of real estate investment is the unknown factor and that's always the least discussed- strategy is always different depending on macro climate, if mney is cheap leveraging equity is the best, if money is expensive then buying debt is good option- don't chase best return but chase the most understood risk and capital preservation as a goal- not all RE investment has equal return/risk , syndication in multifamily for example is outsourcing all risk to investor while gp makes the most money lol- direct investment is always always better than indirect investment, except in certain asset class and extremely good sponsor that could find a noticeable return/risk reward.- donot follow the crowd, when everybody else is buying then it's good time to sell, vice versa LOL- if the math doesn't pencil, GTFO lol I do not agree with everything in this post but agree with a lot of it so I thought I would add my view.

And just like with the others above there are some good deductions you should be taking advantage of here as well.S-CorpW2 income – that’s easy, you probably understood that your W2 income can be added BACKK-1 income (box 1 & 2) – also pretty self-explanatory, but just in case, it’s added BACKAmortization/Casualty Loss – Added BACKDepreciation 1120s (line 14 & 15) – Added BackHowever….Mortgage Notes, bonds payable in less than 1 year (Schedule L, line 17)- this is SUBTRACTED from your incomeMeals & Entertainment (Schedule M1, Line 3b) – SUBTRACTED from your incomeNon re-occurring Other Income (1120s line 5) – SUBTRACTED from your incomePartnershipsW2, K1 (box 1,2, & 4), Depreciation, Amortization/Casualty Loss – all added BACKNon re-occurring Other Income, Meals and Entertainment, Mortgage Notes payable in less than 1 year, AND Ordinary income from Other (1065 line 4) – all SUBTRACTED from your income*WHEW* What a lot of information and we could probably spend ENDLESS amounts of time on this subject.

Understood.

We saw the potential in STR and understood location placement to maximize yearly profits.

If not, then providing proof that the payments are being made by someone else, will certainly help your DTI ratio Understood. 

@J Scott Yes I understood what the spreadsheet was conveying and that there was some materials provided in the labor section since it's difficult to know what the contractor spent on materials since most people pay after the job is done anyway.  

The biggest risks to me are: Capex costs: these can often be understood before you buy a property, but anything missed tends to be a major factor.  

Turns out nobody else in the industry, including lenders, really understood the negative impact these loans would have on millions of people.

The Flip Coach program has the A to Z of information, but more importantly Ryan really motivated me and made sure I understood the actionable steps I needed to take.