ARV minus rehab, holding, and risk • Whether selling before permits/repairs avoids additional carrying costsIf you haven’t already, talking with an investor-friendly agent or broker who has sold damaged properties in MN could help you gauge realistic as-is pricing.

Chalk this up as a learning experience and the opportunity to avoid sunk cost fallacy. 

These loans are amortized over 30 to 35 years, and it is advisable to approach DUS lenders directly to avoid additional broker fees.- HUD loans have slightly better terms than agency loans but require a longer approval process of around 6 months.

3. avoid full gut mess - aim for 1970+ that might only need some cosmetic work - something that worst case scenario you can DIY.

That’s the sweet spot for:DSCR lendersInsurance and taxesManageable rehabsReasonable tenant demandI’d avoid full gut rehabs under $50k for a first deal.

Off-market deals and connections with local agents, contractors, and property managers will be key since they can help you avoid overpaying and secure reliable tenants.

AZ is a very Hot boring state here the market blew up from people moving out of CA to avoid high taxes, over priced homes and during COVID.The market has shifted and some home are actually under value with some home owners owing more than their mortgage.

How do you position/market your listings to avoid safety concerns when located near bars/nightlife and sleeping 15+ I’m well aware this type of property attracts bachelor parties and other potentially problematic groups, but we’ve managed that successfully in the past.

Ideally <2yearsConstraints & AssumptionsGeographic constraint:South Bay HCOL pricing limits feasibility of local house hacking or multifamily purchases.Experience constraint:First investment property.Common advice suggests avoiding out-of-state (OOS) investing initially.Cashflow constraint:Current w2 works now but children wont become cheaperTime constraint:Part-time involvement only (10–15 hrs/week)Problem StatementGiven:High local acquisition costsWarnings against OOS investing for a first deal,A near-term need for cash flowWhat investment strategy best satisfies the 2-year cash-flow goal while aligning with the 15-year independence goal?

Eric, they have a version of the notes fund that avoids UBTI, but you need to ask for it when making the investment.