But none of that pays the mortgage.If you want predictable cash flow, you underwrite deals based only on what the property can realistically produce the day you buy it.

It's tiny, but at least the burned down house on it has been scraped and it's an empty lot. 

Speaking from my experience as a real estate professional, real estate investor, and mortgage broker, a setup like this can produce a significant tax advantage when you combine STR material participation with a cost segregation study and 100% bonus depreciation.

Start with a tiny win you can control: pick one neighborhood, one property type, and one rehab level you’ll touch, then run noise-to-numbers on 20 deals and make 2–3 offers this week.

Of the top ten revenue producing STRs in ALL of Oregon - at least two are in Bandon.

They are no longer a low cost producer.  

Cash Back at Refi ≠ ProfitThis one traps beginners.You pull $30,000 out at the refinance, and suddenly you think you “made” $30,000.You didn’t.That’s debt.You borrowed it.The only reason BRRRR works is because:The asset produces cash flow.The long-term tenant pays down the loan.The equity buffer protects you from downside.You’re leveraging debt into a cash-flowing asset.Not printing money.4.

Mine usually don’t produce much at all the first 2 or 3 years.

If you have to sell sooner than planned, it’s usually harder to maximize your return.From an income standpoint, small multifamily properties generally outperform single-family homes because they produce more rent.

I believe for the patient mostly passive RE investor that leveraged RE can do well but1) residential RE is not passive, especially compared to index funds and etfs.2) because non commercial residential prices are near an all time high, interest rate is near high for this century, rents are all time worse compared to costs (per 2 recent studies) that you would be entering RE at a challenging time and a time were most RE will not produce the returns that were easy to achieve prior to 2022.3) RE provides diversification, but may not far exceed the returns from passive options.