A vacation rental could generate higher returns but requires more active management.

A real estate business can also potentially generate a SOLO IRA or something like that. 

I'm in Detroit now for inspections on one and to generate the scope of repairs on the other.

Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time.

Still, it is worth it.Think of FF as a lead generator and not a booking platform.

A $500k property should produce gross annual income of +/- $50K but can generate as much as $65-70k with the right location and amenities like a hot tub.

You need a lot of units under management to pay a maintenance tech 40 hours per week.When determining when to hire a PM or ops team member, that greatly depends on how much revenue your units generate.

One fast way to generate cash flow is to invest in high cash flow, low appreciation markets (say several midwest e.g.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

In New Hampshire, title laws are strict, so we couldn’t move forward without obtaining a signature from a living heir.The title company dug deep and eventually located a distant relative—a niece of the deceased owner, two generations removed.