It has been profitable for us but competition has risen in recent years so we continually work to refresh our places and marketing approaches.

Mastering off-market acquisitions, sharpening your sales skills, and structuring deals for maximum profit. 

If the place needs major repairs, that should absolutely be factored into the price, otherwise, you’re just overpaying for problems.

I work with a handful of repeat clients who have succeeded and profited very well with all exit strategies. 

Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

What was your upstart expenses and do you consider it a profitable endeavor or something that just waste time?

Yes this leaves more money in the deal but it reduces my risk and ensures I can remain profitable in a down market. 

Great points, ZharaBirmingham has relatively steady and diverse rental demand, and I’ve seen many investors I work with have success with C/B class buy-and-holds.Location is key—areas near UAB, major employers, and popular suburbs tend to have the strongest rental demand, while C/D class markets offer solid affordable housing and Section 8 opportunities.

@Jason Khoury I purchased my current residence, a duplex, from a local non-profit about 5 years ago.

Could be very profitable if you made this your job though.