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.

Versus you should be getting a discount if you’re going to have to deal with the hassles of break downs.

They would rather have that time to do as they wish then obligations in exchange for active yield versus passive yield.