Since we have recently bought a condo we don't have the capital to go all in by ourselves on this property.

Distressed commercial properties often need significant capital and expertise to reposition successfully.

The PPM and Docs are customized for your project so you will need to have it outlined upfront on the structure and payout (is it pref equity, debt and the capital stack etc).

As a result the property, based on capitalization rates, can now be sold for $450,000.  

No Capital gains tax if I sell one day either. 

Mine was also out of state, in a town I’d never visited, and I relied heavily on videos from my agent.This sounds like a tough first deal, but it seems like you have some capital on the side, which will be useful as you face the upcoming challenges and learn from those expensive early mistakes.Regarding the subject of this post, “help me adjust my expectations,” I’d recommend assuming that; repairs will cost twice as much as you estimate, maintenance and vacancy rates will likely double from your initial projections, there’s a very real chance you may lose money on this deal.That said, there are ways to mitigate these risks by:- Keep asking questions here on BP and connecting with local experts- Stay proactive and communicative with your agent and property manager.And remember “Inspect what you expect.”Im not trying to discourage you but to help reset your expectations.

Honestly, I don't think you will be sacrificing a lot if you choose DSCR over conventional these days, and it will give you access to your capital/equity a lot faster.Happy to connect if it would be helpful.Good luck!

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

The combination of high costs and the after-repair value (ARV) frequently leads me to conclude that buying a new rental property is a better use of capital.

Whether it’s an offer to purchase a property, to provide equity capital, or to provide financing, I merely state the price/terms I’m willing to pay.