Tenant #1 being month-to-month is the biggest threat to the whole strategy.If they leave, here’s what changes immediately:• Your DSCR drops• You lose ~25% of your projected rent• Lease-up time + potential TI costs hit you at the worst possible moment• Your 5-year payoff timeline stretches fastBefore closing, I’d get clarity on:• Whether they want to stay• What they’d need to sign a new 3–5 year lease• Market rent and demand for that particular unit in case you do lose themA month-to-month commercial tenant should be treated like a vacancy with training wheels.3.

My biggest hesitation is that my closest profitable markets are about 3 hours away from where I live, so I’m figuring out whether that distance is going to make things harder than they need to be for a first deal.I’m here to learn, connect, and get advice from people who have been through this stage.If anyone has experience with:•managing a unit several hours away•starting with arbitrage vs. co-hosting•picking the right first marketI’d love to hear your perspective.Looking forward to being part of the community and learning from you all.Thanks! 

Quote from @Nathaniel Carter: Seeing more investors using DSCR loans lately, so I wanted to share a quick summary of why they’ve become so popular:Benefits:No income or employment verificationApproval is based on rental incomeClose in an LLC30-year fixed ratesWorks for long-term, short-term, and mid-term rentalsGreat for self-employed investorsGreat RatesThese loans have been helping a lot of investors scale faster, especially those who hit DTI limits with conventional lenders.If anyone has questions about DSCR structures, cash-out refi options, or how to qualify, feel free to drop them here — I’m happy to help. 

That's why someone with deep pockets can overpay cause they're not flipping they're gonna hold this house for 15 - 20 years and their buy price at that point is neither here no there. 

Here is all you need to know about the Fed and interest rates for the next 6 months.

And while many people will advise against investing here (and rightfully so) the real question is - what choice does he have?  

rough description of job:Full-time insurance sales rolewith a structured real estate investing apprenticeship— and a guaranteed first deal if you execute for 12 months.Real Estate Skills & Aspects You Will Master in addition to those as a insurance producer: Deal AcquisitionIdentifying motivated sellers in your buy boxDriving for dollars / list-building / owner outreachLead qualification & negotiation with confidenceBuilding a predictable deal pipeline (and CRM discipline)Financial AnalysisCap rates, cash-on-cash, ROE, equity multiplesRental analysis: rents, expenses, occupancyStress-testing deals (vacancy, rate increases, interest changes)Return forecasting and exit strategy mappingCreative FinancingSeller financing done rightSubject-to & wrap mortgagesBRRRR principles on value-add assetsPartnership & investor structuringDue Diligence & Risk ManagementPhysical inspections & CapEx planningReading leases, estoppels, and rent rollsTitle, zoning, utilities, environmental checksInsurance as a value tool vs. a cost line itemOperations That Drive NOITenant onboarding, communication, & collections systemsRaising rents ethically + transparentlyManaging vendors and maintenanceReconciling financials and tracking KPIs

Further, the only information they can provide on any subject property is legal; property legal description, past lawsuits, LLC formation for borrower.

Welcome to BP, Aarya love seeing people building in the hospitality space.I’m based in the Triad market here in North Carolina (Greensboro / Winston-Salem / High Point), working with investors on small multis, value-add properties, and rental portfolios.

From your description I thought it was falling off the cliff in to the ocean, so this seems less scary by default.