My concern with declining values, increased inventory and a weaker economy would lower rental income and could potentially put me into a negative cash flow situation.

during the 2000s before the crash we got up to about 3 mil a month in lower balance high profit loans and were between 30 to 40 mil out.. we originated all our own loans.. do not trust brokers all my worst deals came from them.. this took about 12 people..

Basically, there's no free lunch when it comes to taxes.Depreciating property lowers your tax basis.

She will get you set up with a consultation.They specialize in High-Level Tax Strategy, using real estate as the primary vehicle. 

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

Rent growth has a larger impact on long term cash flow then initial cash flow.I am confident that on a 10 year hold, the higher cost market BRRRR in most markets will out perform the lower cost market BRRRR. 

Tenants in lower Classes will have lower credit scores, which means higher chance of defaulting on their lease payments.

Rentals are extremely difficult to make pencil right now but would only personally consider higher end projects because the costs are far easier to absorb than trying to build in lower value neighborhoods.

These platforms typically have billing policies where you pay a per unit fee per month to the software and you get regular updates and support each month.There are a number of low-cost platforms available that are able to offer you a lower price by passing along some of the costs to your tenants (payment processing fees, applications, tenant screening, etc).

Cheap houses in lower class neighborhoods will get you cash flow with a lot of headache.