I recently invested in a small multifamily deal outside of Detroit that I found through twitter!

If I was dreaming of a duplex I wouldn’t rush the deal and just buy a SF simply to be buying.

We just closed our second deal in the past 30 days, and for me, my portfolio or success, would not have been possible without an amazing partner.The reason for my post is that I've learned that real estate, especially multifamily, is a team sport.

If you are trying to pinch pennies on a development project than you simply have a bad deal and need to bail. 

Property ARV: $450kTotal in: $350kMonthly rent: $4000Monthly taxes & insurance: $530[Loan 1] (via broker)75% LTV1.5% origination fee ($5062)Other fees: $1595 underwriting + $1295 processing (=$2890)Interest rate (floating): 7.25%5 years PPPMonthly P&I: $2,278Rent - PITI = $1,192***If appraisal comes back high enough, may be possible to do 80% LTV at 7.99%[Loan 2] (direct lender)70% LTVNO origination feeOther fees: $1,395 underwriting + $695 processing (=$2090)Interest rate (will not change): 7.375% 5 years PPPMonthly P&I: $2,152Rent - PITI = $1318---------------------------I really like how there's no origination fee with lender #2 so I get to keep more of the money I pull out.

BP has various tools to help you analyze your deals (rentals, flips, wholesale, etc). : https://www.biggerpockets.com/investment-calculators7.

Most of my borrowers tell me that their biggest challenge is locating the deals that make sense on numbers/profits.

The loss is typically treated as a short-term capital loss, which can directly offset short-term capital gains, and up to $3,000 of any excess loss can offset other income.Consult a tax professional to ensure you're handling this correctly and maximizing your potential tax benefits.However, if you lose the money you pay to buy the debt, the deduction from the loss doesn't equate to tax savings dollar for dollar. 

I'd recommend diverisification, but if you do come across an exceptional opportunity in real estate or otherwise to be open to skewing in that direction.

My out-of-state clients love it here because they are able to purchase deals at a very cheap price point and still meets the 1% rule.