There are alternatives note investors have and thats new origination's where of course you will have some bummers but your not starting out with a defaulted borrower at the get go.

Materialism is his love language.

Alternatively, do the risks outweigh the benefits of $500+ cashflow plus 30% day one equity and less than 2k out of pocket?

Perhaps slightly higher from an alternative lender but definitely not from a credit union and expect much higher fees.

@Kyle Atans  for me for the younger investors or starter investors is  at least use that 100 or 200 a month positive to paydown debt at an accelerated rate it will save them a ton in the long run and if they can get them paid off in 10 to 15 years that's a good thing.. its not like saving 1200 a year is going to materially affect their ability to buy unit number two and if its that tight not sure owning rentals is that great of investment anyway.

Its return is achieved due to an alternate rent model.  

There're some alternative planning approaches, but they are always case-by-case.  

I don't expect material improvements until 2026 at the earliest. 

These templates cover various aspects of subcontracting, including responsibilities, materials, and liabilities3.

However, as W2 earners, these losses are considered passive and can only offset passive income unless you or your spouse qualify as a Real Estate Professional (REPS) by meeting the 750-hour and material participation requirements or STR is used.