The risk of negative cash flow here comes from the high leverage though, not from the market.

For high bonus depreciation, consider exploring new construction projects, which can offer up to 100% first-year bonus depreciation.

3) If I can find a private money lender to do a 2nd mortgage, they will need a high interest rate.

By keeping her, you are just kicking the can down the road and increasing your risk of losses.I highly recommend you find a qualified property manager before you run this investment into the dirt and lose big.

Velocity of money, or speed in which you can complete a BRRRR investment and repeat, is key to success, and refinancing with the shortest seasoning requirements is highly important.Loan terms and interest: Cash flow is also an important consideration for a refinanced rental property, so attaining a low interest rate, as well as other aspects of loan structure (term, amortization, or interest only, etc.), plays a big role.Generally, there are three main refinance options for BRRRR method investors: Conventional loansBank/credit union loansDSCR loansConventional loans are generally defined as loans originated under GSE (Fannie Mae/Freddie Mac) rules and guidelines and securitized.

Our values here are high, and generally continue to go higher. 

As the barriers to entry for obtaining a short term rental permit on the Oregon Coast or high potential areas of California increase, that should bode well for operators of short term rentals in some of those areas.

@Hyeonji OhNavigating the real estate market, especially in high-priced areas like San Jose, can indeed be challenging.

I highly recommend finding a market that is landlord friendly, cash flowing, doesn't have regular catastrophic events, property taxes are low, insurance rates are under control and you like the area.

Use the left over money to put towards another investment (whether it is real estate, stocks, or even a high interest savings account).3.