That gives you capital you can redeploy into stronger cash-flow deals later.Cash-flow-focused deals are better if you want stability, lower risk, or income right away.For a first rental, a balanced play usually works best:A property with decent cash flow and a realistic value-add angle.

Ward III Really great checklist, completely agree that readiness drives confidence with lenders.A few elements we’ve found helpful to include as well:▪ Sensitivity analysis on DSCRJust a quick look at how the deal holds up under different rate or OpEx scenarios.Shows we’re realistic about what’s changing in the market.▪ Institutional OpEx benchmarksA one-liner that ties expenses to actual operator averages helps align expectations early.▪ Brief risk/mitigation bulletsDoesn’t need to be heavy, just shows we’ve already thought through the downside.Those couple of additions have made conversations with lenders much more efficient on our end, especially when moving from preliminary interest to real underwriting.Appreciate you sharing this, would definitely like to take a look at your full checklist PDF as well.

Not advertising a deal, just trying to understand what “market” looks like.Hypothetical (but based on a real situation):- Location: Central Los Angeles, Jefferson Park–type area- Asset: Existing 4-unit multifamily on a single parcel- Context: Within walking distance (~0.5 miles) of an E Line / K Line rail station, so it appears to fall into a transit-oriented development (TOD) pocket that should benefit from SB 79 upzoning (higher minimum density / height / FAR if standards are met)- Ownership: Held in a family trust tied to a probate / conservatorship, with a court-supervised mandate to (a) preserve the asset and (b) use it to support an elderly beneficiaryThe family side can realistically contribute **land only**; they don’t have the balance sheet or cash to run a full entitlement + construction process.

I think one needs to be realistic about what a "deal" is in 2025 and thinking you will find a property that you will pull more money out from the refinance than you needed for the purchase price+rehab+closing costs+ holding costs+interest and so on and still cash flow $500 is definitely not realistic, at least in my market.

I’m noticing an interesting shift here in Columbus:• Inventory is finally starting to loosen up• Sellers are getting more realistic with pricing• Rents are still holding strong in most sub-markets• Small multis (duplex–quad) seem to be sitting longer than last year• But good value-add stuff is getting snapped up fastFrom what I’m seeing, it feels like one of the better windows we’ve had in a while to pick up small multifamily, especially anything with below-market rents or light cosmetic rehab potential.Curious what others think, are you being more aggressive right now, or staying cautious until rates move?

You'll also want reserves in case you go over budget on the rehab or the house sits on market for 3 months longer than anticipated.The questions you need to answer are 1) how much cash you have liquid, 2) what is the actual ARV, and 3) what is the realistic cost of the rehab and carry costs.

If you buy a $400,000 house, and in a year you are forced to sell, you will spend about $32,000 prepping the house, real estate fees, closing costs and other essentials.

I'm torn between all options as I would love to avoid taking on the debt, but I also want to be realistic in what needs to be done and being able to get it done in a timely manner. 

In most cases, the property manager ends up being the one truly running day-to-day operations, which makes it hard for the IRS to see you as “materially participating.”To meet REP requirements, two things have to happen:-You (or your wife) need to spend more than 750 hours a year on real estate activities, and-Those hours have to make up more than half of total working time for the year.The challenge is proving that level of involvement when a property manager is already handling leasing, maintenance, and tenant issues.

If cost segregation is completed before the end of the year and the property is listed on Airbnb and we meet the material participation requirement, is it all realistic to do this year?