Hey Andy one of the keys to profitability as a landlord is quick turn over. if you where renting your unit out for $2,000 a month and waited 3 months to get someone in.

.: Quote from @Theo Hicks: In ideal conditions:Pref equity receives higher ongoing distributions but no profits at saleCommon equity receives lower distribution and profit at sale (assuming their is cash flow left over after pref equity is paid and assuming their is profit at sale.In non-ideal conditionsPref equity may receive ongoing distributions less than pref, or no ongoing distributions at all, but the pref accrues.

With a passion for finding undervalued properties and transforming them into profitable assets, they are eager to learn, grow, and build a successful real estate portfolio.

For traditional loans that rely on personal income and DTI (Conv, govt), there is no requirement that the properties be profitable.

small profit Lessons learned?

My real estate journey began in 2010 with a three-family property that I lived in, renovated, and eventually turned into a profitable rental before selling it via a 1031 exchange to purchase a short-term rental.My current goal is to acquire my first multifamily property using private lending by Q1 2025 and grow my portfolio using the BRRR strategy.A question for the community: What’s been your most effective way to connect with private lenders for small multifamily properties?

It also puts your agent and lender in a tough spot where it could be a perceived "fraud for profit" and they could lose their license and face time/penalties if they knowingly cooperate.

Ok so this would be profitable for a potential investor if you seller financed.

Keep in mind that landlords in expensive markets aren't making an profit (cash-flow) on rent.

Would I pay for all the remodel expenses and then 50/50 split of profits or does contractor pay remodel cost?