This is also why you had strategic foreclosures during the GFC out west.. folks upside down they know they can just walk with only credit dinged.. so they live for free as long as they can then move on ..

What are the pros/cons of paying all cash vs taking out a loan for the first investment? 

Investors are seeing consistent bookings throughout the year, making it easier to predict cash flow and maximize returns.Lower Acquisition Costs: Despite the rising demand, Indianapolis still offers relatively low acquisition costs compared to other major cities.

They had to purchase one cash then set it up.

Investor Consequences: Restricted Cash Flow Growth: Investors may experience reduced income over time since rent increases are typically capped below market levels.

Here’s the situation:Key Project Details:•Property Size (pre-renovation): 250 sq. meters (2500 sq. feet)•Purchase Price: 250,000 EUR (1,000 EUR/sq. meter)•Renovation Costs: 750 EUR/sq. meter (includes kitchen, appliances, quality furnishings)• Loan costs (during renovation and renting): 350 sq. meters (due to attic expansion)•Property Size (post-renovation): 350 sq. meters (due to attic expansion)•Post-Renovation Layout: 2 separate apartments•Airbnb Income (24 months): 2,500 EUR/month/apartment (= 5,000 EUR/month)• Other running costs: 600 EUR/month•Projected Sale Price (after 2-3 years): 850,000 EUR (approx. 2,500 EUR/sq. meter)•Closing Costs: Negligible in Tbilisi•Real Estate Agent’s Fee: Typically 3%, but negotiable based on who hires themFinancing Setup:•Property Purchase Financing: 100% bank financing at 5.9% interest (bank has even financed 150% to cover some renovation costs in the past)•Renovation Financing: Our friend is offering to finance 250,000 EUR in cash for the renovationsProposed Partnership Structure:•Work Involved (on our side): Full renovation (10-12 months to complete), furnishing, and property management through Airbnb until the sale (2-3 years)•Profit Split Proposal: 60% (us) / 40% (friend providing renovation financing)Questions for the Community:1.Does the proposed profit split (60/40) seem fair, given the work we would handle (renovation, furnishing, property management)?

This residence is being paid for by cash, no mortgage, etc.

On top of that, insurance has risen making our little bit of cash flow gone and we are now in the negative monthly.

Unless the buyer is paying all cash remember “as-is” doesn’t mean anything. 

Also open to SF BRRR but don’t have a lot of cash on hand for renovations this time.