Real estate investing is forgiving; the average person can still make money even with some big mistakes.

Real estate investing is forgiving; the average person can still make money even with some big mistakes.

That’s the kind of move that separates average investors from the pros.

On average, we see rates eventually drop to around 37% lower than where they started at the 1st cut by the end of the rate cut cycle.

This requires union tribune subscription, but many San Diegans have that subscription  https://www.sandiegouniontribune.com/2024/12/16/home-flippin...To summarize, average purchase price was $760k, average sale $915k.  

The average rent per room is $1100/month and have 6 rooms to rent.

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

For someone that's not as conservative, or a different view on the cycle, they might have a different opinion than me on all of this.2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

I know it can depend on the person there are definitely pros who could make huge moves with this kind of capital but what about the average person who’s been inspired by TikTok or YouTube videos?

You likely will max out before 10 though as the average person with average income will have difficulty qualifying after a few loans because of things like the DTI (debt to income ratios).