1) Align your lending resources.

In Midwest markets you can find light-to-cosmetic value-add properties in B and C class neighborhoods where the rents and prices align much better for BRRRR, and tenant demand tends to be steady without the same level of competition you see in California.For a first deal, staying disciplined and starting in a market where the numbers naturally support your strategy can make the process smoother and give you confidence before tackling higher-priced coastal markets.

Don’t completely ignore retail transactions.Even if investing is your goal, helping a few buyers/sellers builds cash flow and relationships — and many of my best investment opportunities came from people in my sphere.Since you’re working full time (I did as well when I started), I’d recommend:Find a brokerage with low pressure on production.Join or align with a small investor-minded team.Spend your extra time underwriting deals and networking with actual operators.If you want to share what market you’re in, I’m happy to give more specific guidance.

One thing I noticed this year is how often deals get delayed not because of numbers, but because funding wasn’t aligned early.For those actively investing, when do you typically start thinking about financing—before or after going under contract?

Sure there will be a finance and numbers component but from the limited development experience I have, the devil is always in the details and its always solved via relationships at the local level.  

EXAMPLE: I haven't cut my own lawn in over 10 years because I can get it done significantly cheaper than what I make per hour.The other component to keep in mind is landlords typically hire PMCs for one of two reasons:1) No time to properly manage2) No expertise to properly manage- Note: if you have enough time you can learn the needed expertise.Everyone wants to focus on how supposedly "easy" it is to manage rentals.The reality is:1) The difficulty & required time increases as the property/tenant quality decreases with Class A => Class B => Class C => Class D2) It only takes one bad tenant, bad contractor/handyman or mistake that leads to a lawsuit to cost a landlord SIGNIFICANTLY MORE than the cost of a PMC.What Class of rental do you have?

This deal highlighted the value of speed, preparation, and strong execution when opportunities align in active markets.What made you interested in investing in this type of deal?

Separate execution risk from valuation riskWhen ARV is reasonable, the real risk becomes:Permitting delaysContractor performanceTimeline managementThat’s where having scope, GC alignment, and buffers matters most.4.

When speed is critical, the biggest mistake is treating funding as a rate decision instead of a structuring decision.The most effective approach I see is lining up capital that’s already comfortable with the asset type and risk profile, rather than forcing a deal through a lender’s approval process mid-transaction.In practice, that usually means:Pre-aligned capital for acquisitions or bridge scenariosClear understanding of what diligence can be deferred vs. what cannotStructuring around certainty of execution, not just pricingDeals that move fastest are usually the ones where the exit and takeout path were thought through before the LOI was signed, not after.

Short-term flips may make the recapture hit outweigh the benefit.Recapture Is Real:Depreciation claimed isn’t free—when you sell, the IRS recaptures depreciation at 25% (for residential property).So, cost segregation is a timing strategy, not a permanent tax break.Professional Study Required:The IRS expects a detailed engineering-based allocation to separate land, building, and personal property components; this protects against audits.conclusion: Cost segregation improves short-term cash flow but reduces your basis for sale—plan around holding period and recapture to maximize value.