Looking into potentially Multi Family or what size of home will capture the most value.Lot 2 661 SqFt House Rehab $5,000Lot 2 1392 House Finish Construction on Foundation $140,000RentLot 1 TBD, We’re hoping we can construct Multi Family for max rentLot 2 661 SqFt House $750/moLot 2 1392 SqFt House $1900/moRefi/ExitLot 2 ARV $350,000$80,000 Cost of Land/House/Foundation$5,000 Cost to Rehab 661 SqFt House$140,000 Cost to Finish Construction on existing FoundationLot 1 ARV TBD$50,000 Cost of Land in AcquisitionTotal Cost TBDUsing a DSCR 75% LTV 8.3% 30Yr Cash Out Loan, I Estimate we should be able to pull out approximately $255,000 after fees/points.

Instead we are selling some assets and then performing a cost segregation analysis on some of our larger deals to help defray or eliminate capital gains taxes, and just sticking the cash on our balance sheet to better position ourselves for a potential market shift.

However, I am seeking advice from the community on critical points to consider before approaching a potential investor with this proposition.I understand that every situation is unique, but any insights or personal experiences you can share would be immensely helpful as I navigate this potential partnership.

.• Select the properties most similar to mine, and use the minimum rent of these as my minimum expected rent potential.

Of course, this thought is not just in the STR industry, but throughout every industry that has plenty of companies to choose from.So, with that said I feel like a company can stand out by how well they know a potential client's pain points, help said client find solutions to those pain points, can be personal yet still professional, and how much passion can they bring to the table that gets everyone excited.This can make people stop and wonder what makes that company different, instead of blending in with thousands of others. 

Austin will be a bit challenging since the values / cash flow potentials are tough, even 2/3/4 unit properties fully leased up can be negatively cash flowing with traditional long-term tenants - you will see some duplexes like this around, but a for-sale single-unit property rented out on a long-term tenant will likely be rare since it would need a buyer comfortable with either all-cash or super super low leverage purchase or comfortable with negative cash flow

Are you looking to build cashflow, to have a place to move to later, etc.With that said, here are some considerations:1) Transferring title (you buying the house) will trigger a reassessment (higher property taxes), which will significantly affect any potential cashflow.

Prop 2 and a new potential acquisition (Prop 3) are adjacent lots zoned for multi-family, presenting a unique opportunity to develop several townhouses on these combined lots.The challenge?

Each strategy has its own set of benefits and drawbacks, as well as potential returns and risks.Buying to Flip for Quick ProfitBenefits:Quick Returns: Flipping properties can potentially yield quick profits, especially in a hot real estate market.Minimal Holding Costs: Since the goal is to sell the property quickly, holding costs such as property taxes and maintenance expenses are minimized.Creative Freedom: Flippers have the freedom to renovate and design the property to maximize its resale value.Drawbacks:Market Volatility: Flipping is highly dependent on market conditions, and a downturn in the market can lead to reduced profits or even losses.Capital Intensive: Flipping often requires significant upfront capital for purchasing, renovating, and holding the property until it sells.Income Tax Implications: Profits from flipping are typically taxed as short-term capital gains, which may result in higher tax liabilities.Buying for Rental Income and Long-Term InvestmentAdvantages:Steady Cash Flow: Rental properties can provide a consistent stream of income through monthly rent payments.Appreciation Potential: Over time, rental properties have the potential to appreciate in value, providing long-term wealth accumulation.Tax Benefits: Rental property owners may benefit from tax deductions on mortgage interest, property taxes, and depreciation.Challenges:Tenant Management: Dealing with tenants, maintenance, and property management can be time-consuming and requires effective management skills.Market Risks: Rental income may be affected by market fluctuations and changes in rental demand.Liquidity: Unlike flipping, rental properties may not offer immediate liquidity, as selling a property can take time and incur transaction costs.Comparing Potential Returns and RisksBoth strategies offer the potential for attractive returns, but they come with different levels of risk.

Would this potentially trigger a tax reassessment on the property?