DetailsPurchase price: 1.1MReturn (IRR):11.86% per yearCapitalization Rate:5.45%Total Profit when Sold: $1.16MHolding period: 20 years5% down (so that I can take maximum leverage)mortgage rate: 6.7% 30-year fixedVacancy: 5%Management Fee: 8% --> I used this only for calculation but as I will be staying there, I plan to self-manage it.Cash flow: negative $1500 --> My primary job pays decently and I can manage this and have 12 months of reserves.

If you have not performed rehab, you typically will need to have held the property for 6 months before borrowing based on the appraised value - otherwise, in those first 6 months you will be limited to 80% of your purchase price. 

(renting in Auburn, AL was way more expensive than paying for a mortgage in 2020) We are that online joke of our first home is looking like our forever home due to the interest rate and the price point of the home.

Hi Daniel, I would recommend taking a look at out of state real estate investing - especially if you're priced out of California.

However it seems that things are changing, even if housing prices settle out in the coming months and years, they still are and still will be at record breaking highs, which has left my generations purchasing power significantly lower than any others.

Purchase price: $80,000 Cash invested: $72,900 We have less than 2 weeks left in our fix and hold project in Pittsburgh, PA.

thanks James, in analyzing regional data, Louisville continues to show a strong local economy, with a decent trend in the growing rental market, lower median home prices and values, good reasons to make it appealing to us since we are looking to expand our portfolios, providing more affordability to enter into this market ... besides, good friends live in this city ... our visit will make it a business expense :)

Other ways (off the top of my head):- Dedicated Revenue Manager on top of dynamic pricing software- 24/7 guest support- Vendor discounts (i.e. roof replacements, AC repairs, etc)As a new PM I think it is important to highlight where you add value instead of battling on price. 

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator.So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

Great opportunity to partner in those services as well.