A six-month supply is typically considered a balanced market.

Your goal is to have a statement balance of $0 every month. 

But if do a BRRRR from far away that's risky too, without a really good and trustworthy team in place and lots of checks and balances (security cameras, someone local to check on your property) and the ARV and refinance aspect can be challenging.  

. - $45k balance (40% of BPO value)- 7% rate- interest only- maturity date 2/1/2026- mortgagor (owner) pays 3rd party servicing fees what is the value of the property?

Whether you read my book or one of the others out there, I suggest you educate yourself and learn how to manage well before a mistake sours your plans.Flipping is a great way to earn income, but the market has to be balanced.

This balanced approach meets your financial goals, diversifies risk, and aligns with your preference for conservative real estate investments.This post does not create a CPA-Client relationship.

Quote from @Bruce Schussler: A lot of Podcasts and Youtuber's say to cash-out refinance to keep rents balanced with payment; (PITI) then use those funds strategically to re-invest either in more real estate or just put into a high interest bearing account or money market account...Here's some of my thoughts and comparisons;Cash-out refinance with new loan so rents balance with payment:- The cash-out refinance is 100% tax free- The funds can be put into a money-market account off-setting a portion of the interest charge of loan- The loan balance gets eventually destroyed by inflation- The liquid cash eventually gets destroyed by inflation - The interest on the new loan can be deducted from the rent income- The refinance costs are 3-4% of the total- There is less equity in the property and LLC that can be attached in case of a lawsuit- The break-even on cash-out refinance with current interest costs on the new loan is around 12 years Vs.Paid-off property with positive cash flow:- The positive rent income is 100% taxable minus only depreciation and property tax- There is more equity in the property and LLC that can be attached with a lawsuit- The break even is not until after 12 years at today's interest rates- There is a rate risk in today's inflationary environment where interest rates on bonds keep rising*It appears to me that the cash-out refi is in the best interest for a property investor; (Dave Ramsey would strongly disagree!)

Cost of living is about 6% below the national average. 8) Landlord/Tenant rights and laws are fairly balanced, and eviction rates are significantly lower than the national average (22% below national average).

Secondary markets will give you a balance of appreciation and cash flow if you buy in the right pockets and a good asset. 

In fact, our market is approx. 3 months of supply vs 6 months being a balanced market.