Additionally, market conditions are expected to remain softer, with limited rent growth and modest renter demand in the near term.Here are several graphs illustrating the current multifamily market in Los Angeles County:Full Los Angeles County Commercial Multifamily Market Report Here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1183595/Los_Angeles_County_MultiFamily_Market_Report_as_of_January_15__2024_compressed.pdf

Up 10% from last week (CME).Nashville Market ExamLet’s take a look at a snapshot of the housing market today, to illustrate how the market is doing, using my home market of Nashville as an example:- Active inventory is low but much higher than last year, up 24% YoY, indicating strong momentum into the 2024 spring season.

I need help from those who are experienced or knowledgeable in the field to share insights into the scope of work during the design development phase of a new home design.Also, what does it mean when it is noted that “The Design Development Documents shall illustrate and describe the refinement of the design of the Project, establishing the colors, textures, materials, fixture selections, and appearance of the Project using plans, elevations, and specifications?”

Ideally, when you are looking at an illustration, you should see a first year cash value that is about 90% of the premium that you paid.

So LP do get the advantage of these deductions to the degree they are used to offset rental income.Here are some numbers to illustrate:$100,000 rental income less $80,000 of expenses including depreciation leaves $20,000 profit.In this case the investors do benefit for the $80,000 in expenses and depreciation as they are only taxed on the $20,000 profit.On the other hand if the numbers are $100,000 rental income less $120,000 of expenses including depreciation for a $20,000 loss.As you note, the $20,000 loss is passive and can’t be used to offset W2 income.

Let me use the following single family case study to illustrate: As is the case in most markets, the “C” or “D” tier neighborhoods tend to have the better cash flow on a single family home.

Jay,Thanks, I am in the process of doing just that, as Hughes was mentioned in this article:Door to Door: How a set of broken steps illustrates Cleveland's dance with out-of-town investors"The story of Exitos Capital, ... shows the difficulty the city faces in reaching out-of-town investors – and the challenges those investors can encounter in keeping track of their holdings.The company jumped into the Cleveland market in March 2018.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

To illustrate my point, I'll share a little bit more about why this project made sense for ME and MY financial situation: I realized I didn't share this before but I received a CALHFA $40K ADU grant to help with the construction costs.

The agents you want to work with will quickly be able to tell you if your guess is realistic, how to refine it, and will be able to point to illustrative examples of recent deals done by their clients that solve problems similar to yours.