@Matt Wan In the Boston area the inventory is so tight I'm not even sure there's "deals" in the off season.

I do not have a traditional W2 job so I can't pursue the typical conventional loan or a FHA since I don't have income (hence the DSCR route).However, I've seen that most DSCR lenders do not lend if the loan amount is less than $100K.

My question to you is, what is your plan to build up the inventory?

Overall, sounds like there is more inventory coming on line in 2025 in some major markets so wondering what some of those leading indicators of a "bottom" might be.

@Paola Astrid, if so be the case, refi to a conventional investment loan. 

QuickBooks Setup:For flips, I’d use the following accounts:Flips in Progress (Inventory)FIP - Purchase PriceFIP - Buying/Closing CostsFIP - Rehab CostsFIP - Holding CostsFIP - Selling/Closing CostsReal Estate Cost of Goods Sold (COGS)COGS - Purchase PriceCOGS - Buying/Closing CostsCOGS - Rehab CostsCOGS - Holding CostsCOGS - Selling/Closing CostsAt year-end (e.g., Dec 31, 2023), move flip costs to inventory and back into COGS on Jan 1, 2024.

Mid-term is more likely to work in any market than STR, but I think you would be surprised at how well an STR could do if there are no other options like that in the area (think people's parents or friends coming in for the week(end)).I've seen a lot of people grimacing at the net-negative house hack (it's just a product of rates and low inventory in a lot of markets) and this is one option to try to recoup some of that loss.

You will live there for a year, hopefully get some equity so that when you refinance into a conventional, you can cash out, but in this market that is pretty unlikely.

Sometimes the smoothest way to acquire your 2nd house hack, the conventional route could be the best.

I talk to many of my lenders who are sitting on tons of garbage inventory they had to take back.