I'd build at least 3 units. the DSCR loans we underwrite get 1.6 debt coverage and because we build under 4 units they have so many exit strategies depending on which appraisal method goes for more. 

Here's some clarification and advice regarding your client's concerns about purchasing a property with a CLTA (California Land Title Association) policy:Understanding CLTA PolicyCLTA Policy: A CLTA policy is a type of title insurance policy commonly used in California.

Here are some tips and insights to consider as you begin building your real estate portfolio:Options:Refinancing: If you have equity in your condo, consider refinancing to access funds for future investments.Investment Loans: Explore options like conventional loans for financing future rental properties.HELOC: Depending on your equity and financial situation, a Home Equity Line of Credit (HELOC) could provide flexible financing for down payments or renovations on new properties.Build a Financial Strategy:Budgeting: Create a detailed budget that includes mortgage payments, property taxes, insurance, and maintenance costs for your rental property.Cash Flow Analysis: Calculate expected rental income versus expenses to ensure positive cash flow.Emergency Fund: Set aside funds for unexpected repairs or vacancies.Research the Rental Market:Location: Choose rental properties in areas with strong rental demand and potential for appreciation.Tenant Profile: Understand the demographics and preferences of renters in your target market.Market Trends: Stay updated on rental market trends and local regulations affecting landlords.Property Management:Self-Management vs.

Disclosures: this post is an anecdote about a Raleigh NC property for illustration purposes; the numbers presented are actual numbers from my Quickbooks report; the Rent-O-Meter price, T-Bill rates (in the links), taxes, insurance, and PM fees will change over time. 

The execution of a good strategy is more important than which one of those you choose.

Interest Rate: 4.25%Years Left on Loan: 26Estimated Monthly Rent: $1,750Annual HOA Expense: $2,268Annual Taxes: $1,746Annual Insurance: $1,674My concern with the numbers above is depending on capital expenditure projects and vacancy, we may not be able to cashflow.

Insurance is WAY cheaper for a new build, as are utilities, because the newer homes are more energy efficient, and also have less need for immediate upgrades. 

I got two insurance quotes for the same property.

By opting for a 100% seller financing strategy, you're essentially stepping into the shoes of a lender, offering the buyer an opportunity to purchase your home without traditional bank financing.Sale Price and Loan Terms:You sell your Kentucky home for $400,000.You offer 100% seller financing to the buyer at 4% interest over a 5-year term with a balloon payment.Original Loan vs.

The repairs and maintenance on 25 year old mobile homes is sky high, the uncollected rent and evictions on park owned mobile homes is astronomical, and I bet the owner isn’t carrying any insurance.