@George Agyapong If you’re working W-2 in healthcare and considering a 2–4 unit multifamily property, the key thing to know is that rental real estate is usually treated as passive income for tax purposes, while your W-2 is active income.

- Were the cash flow metrics tough to meet compared to traditional approvals?

The purpose of using private money is to complete the BRRRR process where I can cash out and refinance.

In those cases, what matters for tax purposes isn’t whether it’s passive or non-passive income, but whether you or your spouse are materially involved.

.- Cash Flow Advantage: DSCR financing often improves monthly cash flow compared to short-term debt and frees up your debt-to-income ratio for additional properties.- Equity Recycling: Depending on appraisal and seasoning, you may be able to pull out much or all of your original capital and redeploy it into your next deal.- Considerations: Watch for lender seasoning rules (3–6 months in many cases), appraisal risks that could cap your cash-out, and the impact of paying two sets of closing costs.When executed correctly, this hybrid approach allows investors to move quickly on acquisitions, add value through rehab, and then stabilize the property into a sustainable long-term financing structure.

The first thing to understand is that, for tax purposes, you will have two properties, not one: the unit where you live which is personal and the rental part of the property which is business. 

Therefore cap rate has no meaningful purpose in single family. 

The don't finance evert repossessed property but usually only the ones in the best condition.As far as being a Real Estate Professional for IRS purposes, its hard to do as it requires a minimum of 750 hours a years devoted to real estate. 

I'm new to wholesaling and may be interested in making a few calls purely for educational purposes and whatever else your willing to teach me about the business.

We really like the idea of being in a mountain/cabin area, but I worry about being able to find vendors (cleaning, repairs, etc.) as there doesn't seem to be too many STR's in this area to compare to.