@JJ WilliamsI am not a fan of giving cash flow or equity or anything like that in these scenarios- I would rather pick a fixed rate to borrow on and have them act only as a lenderAs time goes on cash flow will increase over time - do you want to owe them for perpetuity on that asset ?

Totally depends on the project.

@Keegan DarbyIs your rate adjustable?

However, depending on the state the overage is in, you may be severally limited on what you can make from the overage.

@Dave Meyer, it depends on the context. 

Asset based mortgages carry a better rate but you are going to have your assets locked up not able to touch until you refinance or sell the properties.

Any of the tax options that don't pass through are likely taxed at a higher rate or create other issues with their structure.

They may come up but understand that rental rates are generally well below market (hence the discount) and these deals are largely off-market if you're able to find them.

. - Strict local regulations can also sometimes increase compliance-related maintenance costsCost-saving strategies I've seen help:- Preventative maintenance programs can help reduce overall costs obviously - Some investors report success with in-house maintenance teams for larger portfolios- Energy-efficient upgrades can help reduce utility costs in the long runYour specific costs will depend on factors like the age and condition of your properties, your management style, and the specific neighborhoods you're invested in, but hope this helps!

The demand is high due to location and elevated rental rates in the area.