What I mean by that is one partner may have the excellent credit, one may have liquid cash/equity leverage and other may offer sweat equity.I mentioned I could put him into a primary home first to establish pay history, offer equity or SBA or other option but he seemed super focused on the deal.

We used a combination of Wayfair, thrift stores and online second-hand sale sites.

This helps protect liquidity and scale multiple builds at once. • Reputation: Unlike flips, where speed and margin rule, new construction is about consistency.

I have also seen DSCR loans get denied in underwriting because of the lack of tradelines or they cannot provide a 12 month rental history if they do not own their own home/mortgage.There are a few Top 3 DSCR investors and a number of ones with ridiculous overlays, reserve of liquid accounts and are Super Fico driven requiring over a 740 Fico to hit their Max LTV's, and getting a good rate without having to take a 3, 4 or 5 year prepayment penalty. 

Some investors cash out when they want liquidity for new deals or need to reduce risk, especially if a tenant-buyer has a history of late payments.

Most newer investors aren't liquid enough to be able to even consider true appreciation plays and often end up buying C and B- properties.

You’ll want to underwrite the sponsor’s track record, the property and market, leverage, fees, projected hold period, and the exit plan, because your liquidity and control are limited compared to owning your own rental.

All the best investors I work with have backup liquidity sources in a pinch to takedown a great deal (investors, gap funders, etc).

Because we want to liquidate that property in yr7, to "rinse & repeat" via 1031 into another new inventory, resetting capex too 0, thus keeping in this beautiful zone we call "all but maintenance free". 

When it comes to real estate, here's a general list of eligible assets and their depreciable lifespans that you should know: Residential Rental Property = 27.5 yearsThis includes any building or structure where 80% or more of its gross rental income is from residential units.That means:- Apartment buildings- Single-family rental homes- Duplexes, triplexes, and quadplexes- Mobile homes (used for residential rental)- Any kind of residential lodging facility where the primary purpose is long-term rentalCommercial Property = 39 yearsThis includes non-residential properties like:-Office buildings-Retail stores and shopping centers-Warehouses-Industrial complexes-Hotels and motels that do not qualify as residential rental propertyLand Improvements = 15 yearsThese include sidewalks, roads, fencing, some landscaping, and parking lots that are separate from the building.Personal Property = 5 or 7 yearsPersonal property used in a rental activity usually has a 5 or 7-year life.This includes most furniture, appliances, carpeting and various machinery.Qualified Improvement Property (QIP) = 15 yearsGenerally, this includes any improvements made to the interior of a non-residential building after the building was placed in service, excluding elevators, enlargements, and the internal structural framework.Computers and Related Peripheral Equipment = 5 yearsVehicles = 5 yearsNote that land itself is not depreciable.