Some sweat equity raised the value up to $475k Lessons learned?

Less Appreciation - LA in general has more appreciation and more equity buildup than Philly2.

I think the most important lesson is to start investing in a position of strength financially.

You may need an experience partner, capital or equity partner(unless you have the down payment), a high level contractor prepared for the various building types. rent rolls, proforma for the buildings.

I do wonder if I leads to more inventory though, I have for instance another client that this 2.5% might be the difference in deciding to list or not, for sellers without a lot of equity that 2.5% can be the difference between writing and check or not, which in addition to some people not having the money to cut a check is also a huge psychological barrier, there are probably even some people on the margins who have in thier head they will only sell if they can net 100k in profit or some random number like that.

I have 2 homes that I’ve rehabbed that I’d like to pull equity/initial investment out of and would prefer to go the DSCR route and shooting for 80% LTV and preferably no season period.

My investment strategy is focused on long-term equity through MTR/LTR, which will hopefully result in cash flow over time.

Where a home warranty MIGHT make sense is for someone who is not in a position to budget money from rent for issues or where they cannot allocate sufficient reserves in case of an emergency.

Do you want to sit on the beach with cash flow, or do you want to build equity?

Remember to consider the equity your tenant is building for you when you compare rent vs sale.