However we have also turned over a couple of properties within the fund during this time, under the assumption that as long as any proceeds stay in the fund, are reinvested in qualified property within a 180 day period...and we meet the 90% asset test June and Dec, that cap gains from these 'flips' can also be parlayed with a basis step up at the end of 10 year. 

I'm not sure if this is a good idea or not so wanting to test the idea out with some people in this group! 

It's a declining biz model.....the city is trying to crack down on them, and insurance co.s are pushing back on the testing charges (which is where the profit is).

We do a simple "Stress Test" with the people we work with to determine what will work. 

I’ve seen others keep their current lenders while building a small fund on the side to test the model.Curious — how are you handling servicing on those CFDs?

If the ARV appraisal comes in lower than expected, or if rates move against you, it can eat into equity fast.As I’m learning, the investors who do the best are the ones who keep multiple lending relationships, stress-test their numbers, and plan their exit financing BEFORE they close.Hope I was any help! 

It’s important to run the numbers carefully, stress-test your after repair value, and avoid letting emotions push you past your margins.As we kick off this Monday, I’d love to hear from other investors.

I have a particular interest in historic properties not only because I think the quality of the materials are better, but because I think the architectural charm and interest will stand the test of time and appreciate. 

There are 7 tests but easiest way is to work 100 hours and more than anyone else's time. 2. short term rentalsrequirements: average stay of 7 days or less, 100'hours and more than anyone else's time (or one of the 6 other material participation tests), not use it too Much for personal use, and not hire a property manager.

Make a ton of creative like 10-20 ads per campaign and test a lot.