You collect market rent (You might be collecting less net rent without a PM, you’re essentially managing for free.)

If you rent out the downstairs for $1400, you will essentially pay $1,600 for the upstairs apartment.

It's essentially a business plan with a sample deal that portrayed the projected returns for my investors.Thanks, Mark!

The 18% rate from the lender is the same as our preferred return.We consider this more a bridge loan as it gets us to the pre-sale stage, and we can use pre-sale funds to pay off this debt position, essentially refinancing.

With historical inflation in mind, that mortgage is essentially an asset.

So they are not even being forced to change projections and essentially are still just humming along as planned.

Since my scenario uses essentially turn-key condition multi-family rentals in an appreciating market ( West Coast major city ).

Develop a team with essential members, focus on moderate property prices and high demand, and start with cosmetic flips.

Having asset protection when coverage is denied is essential.  

I'll be primarily focusing on the "Slow Flip Method" for a few months to see if the juice is worth the squeeze, but essentially, you look for distressed properties in or below $30k and sell them FSBO to people with bad credit for $80-$90k with $2k-$5k down.