.- There is risk in that the rehab has not been completed and the financing has not been secured so there may be unforeseen issues with the home or lending process that may cost more than the estimated costs which can then reduce profits.- The tenant buyer may decide to not exercise the option or may decide to terminate the lease early which may produce a profit less than the projected returns.- The money partner is not the only owner of the company which owns the property and thus has limited decision making over the property.

You will receive the security deposit in Checking but then transfer it to Savings.Savings: Hold the deposit here so it's separate from operating funds.

I specialize In helping investors like yourself locate, and secure investment properties and provide a hands off experience along the way.

With inventory expanding, it feels like there could be opportunities to secure deals, especially if the right cash flow potential is there. 

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Wealth Building: Paying off the first STR focuses on cash flow and financial security, while buying another property focuses on scaling and wealth building.

Just swinging for the fences herePortfolio Loan or Blanket Loan: Use the combined equity of both properties to secure a new loan.

On 12/19/2024, we sold it for $99,000, securing a great return.

This is exactly why you take a security deposit.

Secure the debt by real estate, now we're talking a great partnership deal.