.- Interest Rate: 6% interest only for a term of 5 to 10 years- Prepayment Penalty: 2% if the loan is paid within the first 3 years- Equity Upside: Investor receives 30% equity of the appreciationWhich option do you think is more attractive and why?

Personally not a fan of out of state BRRRR.I think it's a recipe for disaster and having been in the game for 10+ years, I've seen the disaster first hand as I bought hundreds of deals from disgruntled out of state investors who thought they can do it themselves.My property management company has doubled in 12 months also due to out of state investors getting caught with a poor property manager when trying to do it themselves from afar so they come to us for help 🤷‍♂️I'm seeing many investors buying D class crap on the MLS for too much and that needs work.They end up being into the property for 30% more than they would be that if they just bought turnkey.A true turnkey provider will find the cheapest/best deals through a variety of acquisition methods, renovate well and sell for fair market value (And manage in-house).If things go South, they are solely to blame and the penny drops with them.But with DIY, who is to blame?

Hello BP members.I plan buy my first set of properties in the next few months.

Hi, I am actively looking and putting offers for my first rental property, I just saw a townhome that I like from the 70's that needs some rehab, and a few blocks from it there is new development offering same type of units (a bit bigger) 10% more expensive with delivery lead times of 6 months.

The first 2 years out you can only be a "broker associate" like you mentioned.

@Zachary YelderMakes sense.Good luck on sale - hopefully rates dropping will help.Arn

While we have not yet secured our first property, we have spent the last year+ educating ourselves, networking, driving for dollars, and substantially reducing our debt load.  

Other than cap rate and cash flow, what other metrics/calculations do investors use to determine whether or not a property would make a good rental?

Now, lets say rates drop to 5% in 18 months.

Hi @Sabuj Banerjee,In general, in the Southwest FL markets, cash flow for SFH's is expected to be slightly negative at current interest rates, so I would recommend starting with a multifamily propertyNew construction duplexes can be found in both Lehigh Acres and Cape Coral.