Fundamental long-term, neighborhood areas I believe reached their bottom in Q4 2022.

Think long-term.

@Kevin Vasquez   You would also need to ask what the pre-payment penalty is on the loan.

Several things to contribute here: 1) Private Lenders with no credit experience emerge doing down payment and 100%/High LTV financing at the end of every cycle, 2) they're among the first to loose their shirts in every downturn, 3) although someone termed this type of lending "gator", it's not new, 4) the guy that coined it didn't get into real estate untill well after the last crash, 5) he has no real credit background or experience (he's never been a lender), 6) Google the guy's name and "looses professional license in AZ" to see what pops up, and finally 7) he's really effective at telling people what they want to hear, filling their heads full of hopes and dreams, getting them to buy his training, and his minios generally won't want to hear what a real, seasoned lending vet will try to tell them.

Final comment: meaning this well, but please don't call it underwriting, it makes me cringe every time a newbie uses the term to make it sound like they are buying institutional-grade investments on a weekly basis.

Will the profit be counted as self- employment income or long-term investment income?

Two years ago everyone wanted to get in on the short-term rental craze, largely because everyone looked like a genius because of the COVID era boom.

Broaden your investment tactics beyond the BRRRR approach, consider purchasing and holding properties, and evaluate your tolerance for risk and long-term investment goals.

It's now a renovated long term rental.

Purchase price: $260,000 Cash invested: $5,000 This was a short term lease option agreement to help the original owner get back on track with monthly payments and upgrades.