Velocity of money, or speed in which you can complete a BRRRR investment and repeat, is key to success, and refinancing with the shortest seasoning requirements is highly important.Loan terms and interest: Cash flow is also an important consideration for a refinanced rental property, so attaining a low interest rate, as well as other aspects of loan structure (term, amortization, or interest only, etc.), plays a big role.Generally, there are three main refinance options for BRRRR method investors: Conventional loansBank/credit union loansDSCR loansConventional loans are generally defined as loans originated under GSE (Fannie Mae/Freddie Mac) rules and guidelines and securitized.

This is an interesting project with several aspects to consider.

Appraisers give no value to the business aspect, so the property is sold at market value, even if furnished and even if there are future reservations on the books. 

If I NEED to sell within five years, this calculation provides insight into the real-world return that incorporates these vital aspects of the investment.I want a balance between steady cash flow and long-term appreciation potential. 

I currently work in construction and have some experience in all aspects of building.

This allows you to deduct the full cost in the year it was placed in service.Fences are not eligible for the Section 179 deduction as they are considered land improvements.Given this information, you have two main options: 1) Take advantage of bonus depreciation (if eligible) and deduct the full $4,200 in the year the fence was installed.2) Depreciate the fence over 15 years using the appropriate depreciation method (likely GDS).To ensure you're making the best choice for your specific situation, I recommend consulting with a tax professional who can review all aspects of your rental property finances and advise you on the most beneficial approach.Please feel free to reach out if I can be of any help.Best,Jackson

Summary of Key Differences: Aspect DSCR Cap Rate Purpose Measures debt service ability Measures investment return Formula NOI / Debt Service NOI / Purchase Price Focus Cash flow vs. loan payments Income vs. property value Perspective Lender’s viewpoint (loan approval) Investor’s viewpoint (ROI evaluation) Role of Financing Highly dependent on loan terms Independent of financing Use Primarily for loan qualification Property valuation and comparison Conclusion: DSCR is critical when securing financing because it shows how well the property can cover its debt payments.

Reach out to a few and see who you like.You can also ask members of your local real estate investors association for real estate accountant recommendations.Good luck.Bill thank you for the advice from the tax aspect. 

I just hope i can find something before the new year ideally so i can stop paying rent and own something.Noted on the cash flow aspects too (i have been using the duplex calcualtor for this) and understand i will have a small net payment each month while living there, which is completely understood and fine by me (better than paying large rent)

If you ever plan on doing this later in your days, you could always do a management company and just expand on that, but I can tell you from my own perspective  that LLC – S and being W2 employee under that may limit some of your lending aspects, but it protects you around the world anywhere you go further if it comes to it, you can bankrupt your company, sell the assets and open another company the same way and you’re still protected through and through. as my wife is a high earner, it really protects her from civil suits and other things like that or anybody that ever comes to maliciously take what is yours.