The very tragic LA fires have generated a lot of discussion about insurance costs.

If you could buy it with a 15% discount: $60,000And rent discount at $2200 mo. with a 5% increase annually would be: $132,615 for 5 yearsYou would be buying the home at a 48% discount in this example.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

Quote from @Devin James: Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....Finishing a Real Estate project ASAP is critical because...1) Holding Costs add up quickly- Loan Interest- Property Taxes- Insurance2) Investor Capital- Our financial projections are dependent on how fast we can turn our investors capital.

The increasing barrier to entry results in fewer new STR's coming available for sale, but also fewer options for guests to rent. 

Cost segregation utilizes the MACRS approach.

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

The cost associated with insurance for not having 20% is peanuts compared to what you potentially can do leveraging your down payment. 

Hello Everone .

I just bought a duplix for 281K in pensacola 2 months ago , Is it the norm to pay around $3200 on a policy ?
Thank you 

You can always consider doing a cost seg study on a property that you buy and that can also help with tax benefits if you cannot qualify for the real estate professional status.