I agree with others have said, if they can make 24% return, why wouldn't they just borrow at a hard money rate and just make the 24% themselves.

And it's very pertinent to today's environment because it doesn't look like interest rates will be coming down much, if at all this year.

Moreover, many municipalities are adopting new middle housing codes, so if you pick up properties at affordable rates that have big lots, then after a few years of appreciation you'd be in a good position to redevelop them.Hope you're well, stay in touch!  

To add to your argument I suppose the tax implications are better with RE too bc theres a capital gains tax ceiling of 20% vs standard tax rates for IRA withdrawals that are potentially much higher.

This is because the dwindling cash flow due to the increased rates has resulted in higher cap rates.  

Hi @Chris EhrhartThere are two prices in a negotiation, one is the offer counting multiple factors, mainly Cap rate and visible repairs when is a investment property.The other one is when you do an inspection.You listed 5 items here so I'll comment on each one:- Electric panels, this is likely to be found during inspection.

Some lenders offer discounts to return borrowers so maybe look into both flip and DSCR rates when finding a lender. 

Jung,Welcome to the BP forum its a great time to start as mortgage rates fall and home prices still priced well in many states.

What are their nightly rates, occupancy and amenities?

it makes for a very juicy internal rate of return.