Like others have said there is potentially some liability there (america!)

As I have heard that a “failed security system” could potentially lead to liability for tenants property.

@Whitney Lares I kept my first BRRRRs as LTRs, I know MTR and STR have higher income potential but my goal is time and income, LTRs provide me that and the management of these in STL are much lower monthly % so it works for me.

But those are nice cabins with more than one special factor: incredible views, high-end design, amenities.But I run numbers on potential short term rentals all day, and 4 out of 5 are less than 5% CoC.

@Johnathon Jenkins so even though the liability is covered, am I potentially missing out on certain loan programs for small businesses?

You hit the nail on the head with the value we are trying to provide; a fee in exchange for saving an investor potentially years of headaches and lost opportunity going through team after team until they find the right fit.

Is this a poor strategy considering the potential market downturn?

You can potentially find undervalued properties, rehab them efficiently, and achieve good rental income.Decent rents: $1000-$1600 rents provide a strong foundation for positive cash flow after factoring in rehab costs and ongoing expenses.Cons to consider:Market competition: Investigate how many other investors are using BRRRR in Wichita.

i bought a home warranty once and never would again. they rarely have things taken care of in a timely manner, which can be fine for your primary in some cases, but not for a rental. and the companies they contract to do the work, are getting paid pennies on the dollar for those jobs based on the deal they negotiated, so they're in NO rush to get out to you. and like any insurance company, they do all they can to get out of stuff. it was a waste of not only money, but also time and energy.

Regardless of the market you choose, please make sure you have reliable boots on the ground (agent, contractor, handyman, bird dog) to check our potential properties and be able to respond in the event of an emergency.