If we build them right, we still capture some equity and minimize the capital we need to bring in,  but we’re definitely not in the same environment we were a few years ago.I actually just went under contract on what would be a “classic” BRRRR again, a heavily distressed property that’s already gutted (which I love, fresh slate).

Since you’re in Texas with rentals in both CA and TX, you’re juggling two very different legal and tax environments.

As in all things in life (like choosing a spouse)for instance, it's incumbent upon us to examine our individual personalities regarding whether a proposed partnership would be a good fit or a disaster in waiting.In 2007, when I lost more than $130,000 in the stock market,I learnt a permanent lesson that stuck with me till today.I discovered that I was a control freak.I needed to always know how my actions directly related to my results, and most often like to retain the ability to change my mind even if others would find such reversal a stupid idea.Seeing how much control I didn't have on how my stocks performed in 2008 despite all the information I had consumed for several months regarding value investing and how to analyze a company's fundamentals scarred me for life.It made a real estate investor out of me.The safety and assurance that I was taking sole responsibility for the calls i made and the risks I decided to take was a calming refuge.Having been a Pro-member on BiggerPockets for as long as I've been has its perks.It gives one a front row seat to see in slow motion the interesting evolution of the component parts that make up this mammoth industry.I watched in amusement as one member arrived as a total newbie in 2018 with a welcome post, voraciously consuming unsolicited counsel on the member forums for a few months and then posted a "success story" of his deals after 6 months.Within a year, he had his own podcast and is now buying large apartments as a syndicator pooling investors' money.To be clear, this is not a hate post.I certainly do not begrudge people "crushing it" in record time.Nonetheless, as a 'senior' member of this community who has seen this movie before,I do feel a lonely cautionary voice in the wilderness is needed at this point.We are in an environment of unprecedented cap rate compression and record low interest rates which is only headed in one direction after this is all over.Yes, make no mistake, the music will soon stop.That has very little to do with an upcoming election and is regardless of who wins the White House or who controls congress after November.If you've listened to Kevin Bupp and Rod Khleif, you know what happened to their portfolios in 2008.These were no amateurs, as a matter of fact, they had many years of investment experience when the music stopped.They both weathered the storm and came back stronger and that is why I remain a shameless fan of both men till today.Several others were not that lucky, and you will never hear their names.In this space today, there are investors and there are educators.The educators have taken over the habitat.That is why there are now more podcasts on real estate than I can get through in a working week.Real Estate education is so very lucrative now that it is possible to make way more money from podcasts and books than in actual real estate investment for some gifted marketers with smooth tongues and gifted content creators.We are in the information age after all, and youtube millionaires are now perhaps outpacing patient real estate buy and hold landlords in the passive income/ cash flow game.Belonging to a $25,000/year mastermind and attending a syndication bootcamp does not insulate anyone from catastrophe.

Especially since they're just twiddling their thumbs at home during this government shutdown (cue Lindsey Graham screaming his pretty little head off).Follow-On Effect: RussiaOne aspect of this deal that many folks may be sleeping on: the US is requesting China's assistance in negotiating a peace deal between Russia and Ukraine.

A 1031 exchange could defer the tax, but only makes sense if you truly want to stay in real estate and can find a good opportunity.If you pay off the mortgage, you’ll get strong cash flow and peace of mind, but your tax deductions will shrink since you’ll lose mortgage interest and depreciation will start phasing out as you approach full basis recovery.If you keep the loan and use your HELOC, that gives you access to funds without selling or triggering tax, though it slightly lowers your cash flow.

Quote from @Collin Hays: One of the challenges in the current STR investment environment is that, in the 2018-2023 time span, the investment was being touted as a money tree.

Not what you are seeing.A distressed single-family home in the $300-400K range in Austin is older than 1990 for sure (if not substantially older) and likely requires 40-50K+ in rehab to bring above $2,000/month in rent (or more precisely, to have the chance to do that, in an environment with 4-10% vacancy rate!).

You don’t necessarily have to follow through with eviction if they vacate peacefully, but it can be a useful tool to protect your timeline and show that you're not waiving any rights.Also agree with others here.

It might cost a few hundred bucks, but it’ll give you peace of mind and could save you a lot more in the long run.

It's true that getting started in a higher-rate environment is like learning to swim in the deep end.