Same thing might happen with the vacancy if you have 2 months for lower end instead of 1 month for better area.I would use higher percentage for repairs and vacancy in lower end area when you compare CF for the 2 properties.Even in higher end area this year I had 2 evictions and one of them with 6 month vacancy and over 12k in damages, bad things can happen in both areas, the important thing is to keep cash reserves so you can get over unexpected expenses.

While this might sound low compared to some high-yield investments, it's steady and relatively safe given the high down payment and the over-market selling price.In conclusion, while the 3.03% CAGR might seem small, remember that this calculation doesn’t consider other potential financial benefits like tax advantages or the value of having the capital upfront.

The IRS considers it a loan, just like any other, that represents potential interest income to the lender (in this case, you).

Has anyone delt with a hard money lender then financing at the end to a traditional bank?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

Plus, if a unit is vacant, you lose part of your potential income, which might be more impactful compared to having multiple units in a larger property.Market Limitations: Depending on the Lubbock market, there might be a limited number of duplexes available, which can restrict your options or inflate prices due to high demand.Resale Market: Duplexes might not appreciate as rapidly as single-family homes, depending on the area and market trends.Hope that gets you started, shoot any questions you have my way!

These are all preliminary questions a lender would ask to vet our your file.

I'm very intrigued by a property that is in a great neighborhood and will appreciate very strongly, but using any sort of financing on it the cash flow return is deep in the negatives for a couple years even though the ask price looks like a good deal compared to other houses around.

I decided to raise their rent $500/month, even though market rates for comparable apartments in that area are $200-$600 higher than that.

There was 2371 active listings in April 2024 compared to 2039 active listings in March 2024. 1491 Homes sold in April 2024 compared to 1303 sold listings in March 2024.