Smart investors first focus on finding quality properties—such as those in thriving areas of Brooklyn or potential neighborhoods around Manhattan—and then reverse engineer the process by improving management, optimizing rental structures, or enhancing facilities to make it worthwhile.

I’ve developed a Comprehensive Investor Report (CIR) for a property in Palm Coast, FL, designed to be transformed into a luxury rental asset while serving as the foundation for a scalable asset management strategy.Here’s a quick snapshot of the deal:Property: Red Birch Lane, Palm Coast, FLCurrent Value: $350,000+Mortgage Balance: $165,000Current Equity: $185,000Investment Required: $177,500 (for luxury upgrades and optimization)Projected Monthly Rent: $4,500 with 2% annual increasesTarget ROI: Full 1.5x ROI for investors achieved in 9 yearsLuxury Features: Smart home automation, designer finishes, professional-grade kitchen appliances, and more.I’ve also structured a capital distribution plan with a waterfall approach:8% Preferred Return for investors.Full Return of Capital to investors before profit splits.Post-ROI, a 20/80 split (Investor/Management) ensures long-term alignment.

I’d love to hear more about how you approach finding these under-$2M properties and what strategies you’re implementing for operations optimization.

The model you should go with will ultimately depend on what the group is optimizing for (cashflow, appreciation, tax optimizations, diversification, and maybe even a little bit of social value doing something fun, potentially lucrative, and unique w friends).  

I would stop short of saying I found the inflection point of optimality and being pragmatic. 

This gave us peace of mind and ensured that any unexpected incidents wouldn't result in major financial setbacks.These two choices have played a crucial role in optimizing our STR strategy, balancing profitability and protection.

Six figure income is still impressive for any residential SFR..optimally rates improve and so will rates of return with a refinance.

Focus on optimizing the current fourplexes (improving rents, reducing expenses).

@Nick Am Setting up a management S-Corp (LLC-B) to manage properties owned by your LLC (LLC-A) can provide tax benefits like retirement contributions, payroll tax optimization, and deductible expenses (e.g., home office, health insurance).

I am also looking for tax optimization as the business will require cash reserves and is a high risk business from a liability perspective.