Central Kentucky, in particular, has benefited from Lexington's growth, with many people commuting from outside the city for work.

A tidy profit, plus confidence to tackle the next project solo.On the topic of self-directed IRAs: While they’re fantastic for gaining experience and diversifying into real estate over time, they can feel restrictive if your main goal is scaling quickly.Here’s what I’d focus on:Using Equity Wisely: A HELOC or cash-out refinance could unlock funds to pursue a flip or duplex without touching your 401(k).Partnering Smartly: Your realtor friend sounds like a great resource.

If you are looking to passively invest I would recommend finding a company that is vertically integrated so you have one main point of contact from start to finish.

It will familiarize you with the basic terminology and benefits.

A strong partnership benefits both parties.Happy vendors are more likely to prioritize your jobs and provide high-quality service, benefiting both tenants and owners.Balancing Stakeholder NeedsBalancing these relationships requires a strategic approach:1.Standardized Processes: Implement systems that ensure consistency and efficiency in addressing maintenance requests, approvals, and payments.2.Transparency: Use technology, like owner and tenant portals, to provide real-time updates and visibility into ongoing issues.3.Regular Communication: Maintain open lines of communication with all stakeholders.

And you should never create entities without having a clear business plan of how such an entity would benefit you.

Without house hacking, your figures would look like this:$1850+1850 = $3700 - $1500 - $3200 = $-1000 net in your pocket (let's skip principal paydown and tax benefits for now).With house hacking, your figures would look like this:$1850+650+1500 = $4000 - $3200 = $800 net in your pocket. 

I love house-hacking for Tampa Bay for a few main reasons: 1) great long-term outlook on appreciation; fundamentally strong market and growth projections, 2) diverse opportunities of house-hacks from luxury house hacks, cheap house hacks, room by room, STR, MTR, etc. 

It really comes down to running the numbers and seeing which option offers the best balance of costs, monthly payment, and future flexibility.In short, a DSCR loan might work, but it may not be the cheapest or most suitable option if a second-position loan or HELOC can accomplish the same equity pull with fewer costs or better long-term benefits.

It will familiarize you with the basic terminology and benefits.