The cash flow situation typically improves every year (great Recession excluded).Get a property no more than 15 minutes drive from SDSU. 

Hello All,I am looking for referrals on sources, readings, data, etc on how to increase your rental property value after purchase. Specifcally multifamily properties, and where to really spend the money. What are the ...

@Joshua Strickland, that is a good point but an existing cabin here is around 300k min, market is nuts with very low inventory (touristic destination in the Appalachian mountains).

Hey MarkSince April this year when the Fannie Mae lender letter came out restricting correspondent investor portfolios to 7% of their total portfolio, lenders have increased rates to stem the flow of investor loans, but DSCR lenders have held fast on pricing (or even improved it) creating an odd scenario where a loan with significantly less documentation is priced as good or better than one backed by a GSE.You can do the DSCR loans either in your LLC or not.FoAC is really backed up right now, but there are others that are not with similar or better pricing.Get yourself a good mortgage broker that does these loans and they can point you in the right direction.Stephanie 

That includes if I search for the property, do any improvement to the property, rent that property, etc. this is disallowed. 

Budget some extra funds for when they move out.This is what we use with our low income tenants, if it is helpful:HOUSEKEEPING ADDENDUMThe Landlord's goal is to improve the Highlands neighborhood and maintain a high quality living environment for all residents.

On the other hand, if the sponsor would like to achieve higher cash flow by renovating the property but has run out of rehab money, it may be best to sell it to someone else, get the profits out, and let the next person come in with a new batch of investor capital to upgrade the property and increase cash flow.It mainly depends on the cashflow and the sponsors’ cash reserves to be able to improve the property further or not.

Start by talking to them and explain that even with the warning, things are not improving and then serve them with notice to cure. 

Below is a chart showing the average reclassification percentages by property type.Apartment Building - 20-40%Conference Center - 25-35%Fitness Center - 22-45%Assisted Living Facility - 22-45%Golf Course - 28-60%Theme Park - 16-22%Grocery Store - 20-45%Hospital - 28-40%Auto-Car Dealership - 29-35%Hotels - 20-40%Research Facility - 22-45%Manufacturing - 20-40%Warehouse - 20-30%Medical Office/Clinic - 22-35%Resort - 25-45%Mixed Use - 20-40%Leasehold Improvements - 20-80%Office Building - 20-30%Retail Strip Mall - 18-40%Winery - 18-25%Restaurant - 20-80%Bank - 30-45%Are there any other types of properties you would like more information on?

Recently, the high demand and lack of inventory has presented an opportunity for scam artists.