With the fund I used, they had a month where they had a few defaults, the return was a bit lower, and they sent out an email apologizing for the lower yield. 

Quote from @Devin James: Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball build larger homes. average new build in our market is 2200 square feet, 4 beds, 3 baths, 2 car garage and sells for 515k. construction costs lower if design is good and find the median or average home sale price and push that up. my guess is you built too small. 347k is cheap. we target 429-479k price range in columbus ohio for single family homes and also only purchase close to urban core where premiums are 20% higher and we build smaller like 1500 sq ft where price per square foot goes up. 

You also need to consider that at a lower percentage of money down you will be paying a Mortgage Insurance Premium or MIP. 

Pros: Lower interest rates, flexible access to funds, and leverage without selling your home.

If it's already turnkey that means you're paying higher rates than necessary when you could put 20% down and get a DSCR loan with lower rates and fees. 

This could reduce your help lower your taxable income if the investment aligns with your lifestyle goals.

A lot of people are giving you advice without enough context as to what you would like to do other than get a higher than 3% cash on cash return and other than only putting down 20% - 30% as a down payment.Something that is important to know to give proper suggestions is what you want the investment to do for you and how active you want to be in the investment.In general, the more active you are, the higher your return, the less active you are, the lower the return because you pay for others to do that work for you.

With the equity you’d free up, paying off $50k in personal debt and boosting your credit score while freeing up $3k/month sounds like it could significantly lower your stress and open doors for future projects.That said, selling means you’d lose a cash-flowing asset, even if it’s not huge.

So, the actual increase to market rent will be much lower.

.- Creative Financing Solutions:Options like subject-to deals, seller financing, and syndications can lower capital requirements and increase your purchasing power while providing flexibility for properties with complex financial situations.4.