I’ve been working with real estate financials for a while, and I keep seeing one mistake that costs investors thousands: poor bookkeeping leading to missed tax deductions.🚨 Common issues I see:❌ Not properly tracking repairs vs. capital improvements❌ Missing out on cost segregation & depreciation write-offs❌ Scrambling at tax time instead of planning proactivelyI’d love to hear from the group—what’s been your biggest tax headache as an investor?

If you enjoy hands-on management and rapid income growth, this could be your strategy​​.Considerations: Expect higher maintenance costs, variable income, and stricter local regulations in some areas.3.

Sure don't do the renovation, I only do renovations that project a return of 2x the cost of the renovation.

We agreed, and then they informed us after the fact that the cost end up being $2,000.00 because it was "so dirty." 

I highly recommend you study this, practice it, and apply it.https://www.biggerpockets.com/blog/rental-property-cash-flow...Property Details:Type: Single-family homePurchase Price: $289,900Down Payment: 20% ($57,980)Loan Amount: $231,920Interest Rate: 6.85%Loan Term: 30 yearsMonthly Mortgage Payment:Using a mortgage calculator, your principal and interest will cost $1,515 per monthRental Income:Average Rent for Single-Family Home: $2,171 per monthOperating Expenses:Property Taxes: $300 per monthInsurance: $100 per monthMaintenance and Repairs: Budgeting 5% of rental income ($109 per month)Vacancy Rate: Assuming 5% vacancy ($109 per month)Property Management Fees: If outsourced, typically 10% of rental income ($217 per month)Total Monthly Expenses:Operating Expenses: $835Mortgage Payment: $1,515Total Expenses: $2,350Net Monthly Cash Flow:Rental Income: $2,171Total Expenses: $2,350Net Cash Flow: -$179 per monthConclusion:In this scenario, the rental income of $2,171 per month does not fully cover the total monthly expenses of $2,350, resulting in a negative cash flow of $179.

be sure to stick to your 70% rule for the flip, know your numbers. run everything conservatively. overbudget for time and costs but 15-20% Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I see too many investors now, put a significant amount of money in rehab costs and over leverage themselves on hard money loans with low down payments, their properties are not selling and they are lucky to just payoff their current hard money loan via a DSCR refinance. 

For a 30 year Conventional loan, I'm at 6.5% rate (6.808% APR) for a duplex, 95% LTV, 780+ FICO, owner occupant.And I'm assuming they're paying $2k of your closing costs - not your down payment.

I had a client who kept waiting for a better rate, only to see it jump 0.5% overnight costing him thousands.

They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).