Ideally, no more than 5% over median and no lower than 15% under median.

Be mindful of short-term capital gains tax, as profits from flips held for less than a year are taxed as ordinary income, and frequent flipping may result in self-employment taxes.While profits from flips do not qualify for 1031 exchanges (since flips are considered inventory, not investment properties), you can minimize your tax burden by deducting allowable expenses like renovation costs, loan interest, and holding expenses.If you're considering diversifying into rentals, explore opportunities to benefit from long-term tax advantages such as depreciation and lower long-term capital gains rates.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Most who try to replace their W2 income invest in less sustainable investment methods: investing in lower tier neighborhoods that cash flow well in spreadsheets or flipping homes.

Is it lower risk than flipping, rehabbing, or owning a property leveraged at 65%+ LTV?

@Carlos Ptriawan how do you mean, "management required the LTV to be lower than 50-60 percent" ?

Two things are certain, 1) taxes are lower today than they've ever been in the past 80 years. 2) they are certain to be higher in the future.We should all be focused on paying the lowest “lifetime tax bill” not the “lowest tax bill this year”.By paying 20% and settling up my long-term capital gains is not a bad deal.

Or if you want to swap higher returns for lower maintenance you can look in to FIG (fourplex investment group_.

If rates improve slightly, a cash-out refinance could lower your mortgage rate, but ensure the numbers work with your long-term goals.One thing to consider is your return on equity (ROE).

Congrats on your success in acquiring the duplex that now will yield 6.5% cap at current lower rental rates. 94115 is a great zip code to be in.