When evaluating a property management company, it's important to look beyond just the management fee and consider the full scope of services and costs involved.For example, at our company, we charge a 10% monthly management fee, a $250 lease renewal fee (unless it’s a takeover tenant, which requires additional effort to establish a strong relationship - because usually people are changing pm companies for a reason), and the first month’s rent as a leasing fee.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

If you ask around, you likely know someone in CA investing out of state.If you evaluate a long term rental property from a micro view of let's say the Year 1 return, with interest rates where they are, and using conservative estimates for rent, you'll be hard pressed to find compelling cashflow without going into C or D class areas nationwide. 

Because of it's not going to appraise that high, I could finish the basement fairly easily.

It could easily go sideways and ruin your relationship with your relative or get you in legal trouble. 

If you own a 2-flat with an additional non-conforming garden unit (basement) being rented, and you're considering a cash-out refinance, how will the lender evaluate the rental income?

However; investors also bear a responsibility to sufficiently investigate the contemplated investment, to assess whether the investment is appropriate for them, and to know or learn enough about personal finance to evaluate whether or not they are able to sustain a loss without undo strain.  

Can you share the addresses of properties you have done deals on so we can learn and evaluate ?

With mutual trust, your agent will be able to put more time and care into your searches, evaluating properties for you, and not having to worry if their time will all be for not.

You’ll need to thoughtfully evaluate the timing for flipping, renting, or bundling properties for bulk sales, all while considering current market conditions and your financial objectives.Balancing Flips vs.