Many investors are adjusting by using more cash or creative financing strategies to maintain profitability.Renovation Costs: While labor and material costs have somewhat stabilized, smart budgeting and working with reliable contractors are still crucial for keeping timelines and profits in check.How has your strategy changed for those currently flipping in Phoenix?

Purchase price: $330,000 Cash invested: $40,000 Hey everyone, I wanted to share a personal story about a property I purchased and renovated in Hudson County, NJ.

You are missing my point on taxes.Scenario 1:  Your partner buys the house at the same time you put your cash in.  

I would find a property that can provide you both.I used to aim for 8% cash on cash return + 4% appreciationGiven where the market is now, it is likely hard to find 8% cash-on cash and a 4% appreciation.I think 4% cash-on cash and 4% appreciation is do-able.

For example, say it were a 2bd/1ba property, I would just list it for 1 nurse to stay and I would hit my cash flow goal.

I found a 3-unit property for $629K on the west side of Chicago (Wicker Park area) that will cash flow.Issue is that the foundation is settling and will need to have a significant amount of work done according to the sellers agent and the inspection that they had.

Purchase price: $90,000 Cash invested: $60,000 Buy and hold that I still have to this date.

recovering this negative position can consume years of the actual cash flow when using realistic expense estimates.  

Expect to spend another ~$8K for that.If you are planning to close all-cash and bring enough cash with you for operating expenses and rehab, you are looking at a minimum capital raise of about $3M and that is for a cheap 32 unit.

However, it is important to note that if a leverage you're looking for doesn't qualify with DSCR, it means that your cash on cash return is negative (because it means your NOI or Rent is lower than rent -in most cases).So if you want to maximize leverage and are less cash flow sensitive (okay being negative), then conventional makes sense.