Add to that the fact that private financing typically involves way less bureaucracy, with reduced paperwork and fewer hoops to jump through.

These are prime locations, think near downtown or popular tourist destinations where demand for short-term rentals is typically high.

The 1031 is only into like-kind investment real estate and typically is only 1-3 properties and therefore only 1- 3 markets.

If you're certain the type of renter you're going to get are traveling medical professionals, you know they're on short term contracts (typically 13 weeks).

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, immediate cashflow and at the lower end of relative rent & value appreciation.

Personal loans are typically shorter term maybe up to 5 years.

Sub to deals are risky for the buyer and typically provide little to no value for the seller. 

I typically will book tax entries as an accrual so that they don't affect the operational accounting.My reports do not tie exactly to my tax return as there are temporary and permanent differences between tax books and accounting books.

In fact, a couple of recent studies have shown that working with a broker typically saves about $10,000 on a residential mortgage.

Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private).