To me, this is a cost that won't "add value" to your BRRRR, so I would more strongly consider how much it might impact your ability to rent the unit/house.

Hi Felicia - For high-wage earners, the ability to use rental losses (including depreciation) to offset W2 income is limited.

Hello @Roberto Rohann,Some lenders do not run municipal searches so some of issues mentioned wouldn't affect your ability to obtain a loan for the property. 

Foreclosure should be the last possible step because it will take away you ability to finance any real estate for several years, even up to 7 years for owner occupied programs with good terms. 

Just a short list its like 50 ways to leave your lover there are 50 gothcas in sub to. 1. the easiest for everyone to understand the sub to violated the Alienation clause in the mortgage or deed of trust and holder of the mortgage DT / Note decides to call the note due and payable and starts a foreclosure. 2. foreclosure started and the person who bought sub to has no means to pay it off or refinance it and the original sellers credit get trashed and if its a deficiency judgement state even on an owner occ like Texas lender sues original seller for the deficiency. 3. this kind of investing or acquiring assets tends to attract those with limited resources so they have no ability to fix things they decide to scale up and then it goes out of control and sellers are really harmed4. deal goes south and original seller sues or files complaint with AG. 5.

Being that you already have property management experience and feel confident in your ability to manage a single-family or multifamily property, it really comes down to your financial position.If you have a good amount of cash available to put a down payment towards the purchase of a property and maintain sufficient cash reserves (or if you have a partner you can work with who does), then there's nothing wrong starting off with a multifamily property. 

Real estate requires a certain set of knowledge, skills, and abilities.

I may be a bit arrogant when it come to my ability in ready people and my “trust no one 100%” survival philosophy.

Market risk comes more from location of property in market, access, highest and best use for property, ability to revenant property, size of market, etc. 

Our ability to compete is much better than the cultures in Europe, Africa and South America.