A hot tub is shown to increase STR revenues by 30% or so.

Holding investor funds without a clear and reliable process for withdrawal reflects poorly on RAD’s reputation and calls into question the ethical nature of its practices.

Long-term, look into refinancing once property values increase to lower your interest rate or pull equity for your next investment.Good luck!

Given that the property was worth $390K in its current condition, I saw an opportunity to make the numbers work while keeping my upfront costs low.Instead of increasing my cash offer, I negotiated a $25K down payment with the seller carrying the balance for two years through owner financing.

Two main reasons being: (1) debt does not increase your basis in an S Corp, which means your losses get limited.

In the next 4 years my income will drastically increase, but I don’t want to wait 4 years to buy another property that will be an investment.

There will be no assessment for increase in taxes or insurance so remains at $1935.

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

Dealcheck is FREE and it offers an app for calculators.I’m shocked that that your team hasn’t told you how much your ROI would increase and user engagement just by having an app.

@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.