Lenders care less about the acreage and more about:– velocity of lot absorption– infrastructure cost accuracy– your ability to execute on timelines– evidence of buyer demand

The last thing, call these old landlords they put down as references, and verify their ability to pay on time and everything in between.

After projected rent from the second unit and accounting for taxes, insurance, maintenance, and utilities (+ 20% downpayment), our estimated net housing cost would be around -$2,500 to -$2,800 per month.While this is affordable for us, it represents a meaningful increase in housing expense and would likely reduce our ability to invest aggressively in equities, which has been a core part of our wealth-building strategy.

However, to get to the point of needing any of the above, you need to know, physically, what you are buying; what the true condition of each element is, how soon and at what cost it will need to be replaced; what does your desired Tenant pool expect in terms of floorplans and finishes; and who will be able to perform the needed work to meet your time and money requirements.

That limits your ability to use powerful strategies like the STR loophole and cost segregation to offset your active income with accelerated depreciation.

In 2021 prop 19 passed where your ability to inherit the property tax was limited.  

Professionals know that foreclosure and liquidation are slow, expensive, and uncertain, especially in changing markets.Collateral matters, but it is not a substitute for repayment ability. 5) Downside scenarios drive leverage decisionsA key lesson learned in every downturn is that borrowers who cannot pay often cannot maintain the collateral either.

A.I abilities to coach investors through weird and tricky deals may be invaluable.

Then you just adjust for different sized rooms or other changes, keeping most of the base elements.

On the NPL side its even lower ability to seek financing.