Hi everyone,I am a small STR investor and in the past few years I have been investing in both stocks and real estatewith COC returns of about 20% for the past 3 years.I am considering diversifying my portfolio with LTR and I know that returns there are going to be a lot smaller.So I was curious to know if there was a rough formula that could include mortgage paydown, tax advantages, and estimated appreciationto be able to compare apples with apples.I am only familiar with Cashflow, CoC, Cap Ex, and IRR.

Hi Billy,It really depends on your specific strategy.

I think it will depend on the market.

At the moment things look pretty similar to what they had looked like for almost a decade pre-covid.

Might be some options but will depend on a number of details here. 

Quote from @Mike Schorah: Facebook Marketplace is full of drug addicts.I used to find professionals on Craigslist easily pre-Bideninflation.Interesting.

Reading through some other forum posts, it looks like there are much simpler partnerships, entities, or offerings that would meet what I am trying to do:My Role:-Decide on properties to purchase, mostly SFHs-Establish LLCs or other business structures to hold the real estate and distribute returns-Purchase properties, using loans as needed depending on the ROI/cash flow desired from investors-Act as property manager for the properties-Depreciate properties held in business entities to minimize taxable income to investors-Distribute returns to investors-Create investments that have high cash flow (CF) and low appreciation (App) , moderate CF and App, low CF and high App-Find investors from connections, friends, and family with no public advertising-Advise in a minimal capacity on tax and real estate strategies-Send investment reports to investors-Be fiduciary to all investors-Receive compensation from PM and other management work I do related to the investmentsInvestors:-Can be non-accredited -Invest as little as $1000-Can use retirement accountsWhat references can people recommend for me to learn about business structures, partnerships, securities, taxes, or other topics to get me started on learning what will work for my goals?

If i would have financed it for 15 or 20 years the payment would smaller which would have allowed me to have enough money generated enough money to pay all expenses including taxes

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Will it rent for enough to support the mortgage, taxes, insurance and maintenance until he passes the property off to his heirs???