Insurance - ValuePenguinLow operating costs - The two most significant operating costs are typically property taxes and insurance.Property tax rates: State Property Tax Rates - Rocket MortgageInsurance rates: Insurance - ValuePenguinNo rent control of any kind: Google searchPro-business legislative environment: Google searchSo, if Chattanooga does not meet these goals, I recommend investing in a city that does.

I love 3d printed homes and see them printed in a factory all day long, but that is a controlled environment and concrete vs. elements can be complex. 

We intentionally left cash into the deal after we refinanced because of the current interest rate environment.

Plus, I feel great selling something that also has the added benefit of helping the environment. for $200k owner occupied homes, I might recommend a PPA - $0 down, simply lowering their utility rate compared to the local electric company, saving them money month 1 without ever having to take out a loan. 

Having low cost capital for acquisition is a HUGE competitive advantage in a high interest rate environment.

Third, you run the risk of the unexpected changes in the environment - from accidents to natural disasters to riots and Covid.

We have started the Toledo Investment Podcast, which highlights the local investing environment, reasons to invest in the area, and all sorts of other topics that highlights why Toledo is a great place to invest.

It's definitely a team effort and we're grateful to have a solid team.Here's what happened near closing - Our bridge lender wanted to change the loan amount 2 days prior to closing (reducing it by $325K) which would require raising the additional amount and diluting existing investor equity - fortunately we were able to sell them on why this would create too much of a risk for us and them.Interest Rate Cap Insurance - came in at $60K vs $20K because of interest rate environment & bond market volatility within the last month On our first acquisition we also had some surprises at closing - Insurance came in 3X the budget - for both our underwriting and the lender's (this is more of an issue specific to Texas)Lender required $100K more of CapEx expenses the week of closingAdditional unexpected insurance challenge - the corner of one of the buildings was incorrectly designated as being in a flood plain. 

Supply increases as more people follow the trend of Airbnb hosting to chase higher margins or subsidize their income, and demand is falling as we move into a recessionary environment meaning consumers have less discretionary income to spend on travel and layoffs are impacting household budgets. 

A lender typically will not stop a foreclosure with a purchase agreement (we as a lender did it once and never again as it was a wholesale deal that didn’t close)Lender will probably get all their money at foreclosure in todays environment so no need tooBest bet is for borrower to file bankruptcy but then that could delay significantly the ability to sellBest bet is close before foreclosure