.✔ Criminal Background Check – Run a nationwide search to ensure compliance with local laws while identifying potential risks.✔ Judgments & Liens Search – Since these no longer appear on credit reports, a separate search helps uncover unpaid debts or financial issues.For Section 8 tenants, screening should be the same—rental history and income verification are key since they’re still responsible for a portion of the rent.

To determine a realistic and justifiable ARV for this property with a 4,000 sq. ft. luxury home, I analyzed comparable sales close by in Jamestown, RI, focusing on price per square foot and property characteristics.Step 1: Identifying Comparable SalesI selected six high-end waterfront properties in Jamestown that share similar lot sizes, locations, and luxury build quality.

That means that speed = cash, so identify the slowest moving parts of the project and do whatever you can to speed them up.Do your research on the neighborhood. 

I think the right investor would do 2 units long term one unit short term. this strategy allows you the greatest flexibility. we are also developing an extended stay hotel that's 58 rooms. the size of the average room in that is 216 square feet and rents for a target $80 per night. our development cost per room is 100k per room with hard construction. the smaller you go the more money you make. if I was to suggest anything it would be to focus on the smaller part of the market and on multiple unit dwellings and finding and identifying markets that meet similar numbers. that will probably be midwest markets.

Many times it’s about identifying where their money is going.

How do you identify a good deal when things are fluctuating?

Hey Allen,A lot of great opportunities in and around the Birmingham market, and really it becomes identifying the right neighborhoods and pockets of communities.The margins can also be pretty thin.

Once you’ve identified a promising market, work with a local agent who knows the area well to get a better understanding of neighborhood trends and future developments.

If the study identifies significant short-life assets (5-, 7-, or 15-year property), you may be able to take bonus depreciation (currently 60% in 2024, phasing to 40% in 2025), which could offset taxable income, including potential boot taxes.Key considerations:Cash boot: If you didn’t reinvest all cash proceeds, the IRS considers the leftover amount as taxable gain.Debt boot: If your new property has a lower mortgage, the IRS views the reduction as a taxable benefit, unless you offset it by adding additional cash.Cost segregation: Accelerating depreciation reduces taxable income but does not directly offset boot taxes.

It takes time to identify these properties  and often requires physical observation, not merely sitting behind a computer scanning through property listings, but they are out there.