An example will illustrate the consequence.Suppose you purchase a property with an initial cash flow of $1,000 per month.

It is sometimes hard to compete.I also bought some great cashflowing deals (PTIA over 2.3) that have a low appraised value, making it harder to extract my initial capital contribution (so the money is parked, making it harder to scale than I anticipated)My goal remains to scale:I still seek mentorship, better systems, new ways to source deals, more connections, and better contractors.I hope Bigger Pockets continues to be the place to help fill these gaps. \8999999999 

In virtually all markets, the high LTV loan on the refinance at market terms will create an initial monthly negative cash flow when properly allocating for vacancy and sustained expenses for traditional LTR.  

Many investors initially notice affordability.

The initial cash flow has a poor relationship to realized cash flow over a long hold.  

Renovations done without long-term management in mind often look great initially but create problems later.

However, I’m starting with wholesaling to build initial capital and strengthen my deal analysis skills before purchasing my first property.

This will necessitate the production of a Private Placement Memorandum (PPM), Operating Agreement, and Subscription Agreement.Current cost are $8,000 to $15,000 for legal fees, inclusive of Form D filing with SEC and notification filing for the states the initial investors reside in.

You could also send a formal notice demanding payment and compliance with the contract terms to give them a last chance to cure before initiating foreclosure, which sometimes prompts action without going to court.

A lot of great tools mentioned here.One thing I’ve noticed over time is that tools matter far less than how the initial data is sourced and segmented.