@Dustin Krysa real estate investing is all about properly leveraging your cash.Getting loans allows you to leverage your limited cash.You should always weigh cashflow versus debt load though, to avoid getting in over your head.

Assuming a 39.6% tax rate, John saved almost $50,000 in real dollars on his taxes in 2017.That’s the difference between paying taxes on $300,000 versus paying taxes on $178,400.

Actual cash value (ACV coverage) is what I prefer as a lender versus RCV coverage.

If you are able to save dollar-for-dollar $500 to $1000 versus what you would pay in rent, you have greatly reduced your living expenses and can use those funds to accelerate your investing plan.

This will help you scale also at a very solid price, versus hiring out all the management.

Some buildings were off center by a few inches when built so retro fitting extremely expensive as constant adjustments to level versus tear down and start over.Some land with old buildings I buy I calculate tear down costs and buying the land value only and what rents I can get out of it.

They will want lower risk (existing location versus development), wealth preservation (LLC) to lower risk to their other assets.

I would also rather err on the side of a little too much capacity versus not enough capacity.

But, regardless of private versus direct placement with an originator, or hard money, character and collateral are arguably EVERY alternative lender's biggest weapons of safety, with equity buffer being the strongest protection of principal, not just individual private money.

I can't speak to where you live but in many places there seems to be very little difference in price between an old versus a new home.