Use the actual NOI, not the pro-forma b/c that is how the property is ACTUALLY performing.

The lender Bank was being bought by a larger and needed the non-performing loan off of the books made the deal even sweeter. 

A loan commitment letter carries more weight as it confirms lender approval, signaling a stronger ability to close.Addressing Closing Concerns: A commitment letter meaningfully reduces concerns, especially when paired with proof of equity and a track record of performance, even if on smaller deals.What Brokers Look For: Key factors are a reputable lender, clear terms in the commitment, and evidence of funds for equity and reserves.

Leveraging the equity from your house hack for future investments, whether in STRs or larger multi-family properties, is a strategic plan, but ensure your initial property performs well before taking on bigger projects like flipping.

Maybe it would have skyrocketed our performance, but I doubt it.  

Hey @Shaheen Ahmed, A lot of deals aren’t top performers right out of the gate, but the key is finding ways to maximize income to offset costs like taxes.Stay consistent with analyzing deals you’ll find an area that works for you.

At the time there were limited 3 BR rentals in the neighborhood, but achieved such high rental rates the properties ended up performing better as rentals than as a for sale project.

Your first due diligence exercise in notes is to find out the qualifications, experience, knowledge and financial stability of the note seller-dealer!

You can also check online resources like BiggerPockets or Roofstock, which offer general CapEx guidelines based on property type and age.These methods should help you perform a solid preliminary analysis.

I am very happy with the performance of my portfolio - all my properties are between a 10-13% cap rate.