There are many opportunities out there that you can invest less money and generate a better COC than the property you are renovating.

I don't think I could even qualify for any traditional financing, as I'm 23 years old and got my real estate license about seven months ago, and I've yet to generate a steady income, but on the plus side I do have an immaculate credit score...Anyway, I plan on buying a condo at a judicial sale in Chicago this month.

From conducting my own research and hearing first hand stories, I knew that real estate would be the key to living a life where I am in control of my destiny, financial health, time, and freedom.Getting started isn't easy as I have a full time job with many questions and lessons to learn, however, in the end it will be worth it as I plan on passing on my knowledge to the next generation and enjoy life the way that I was meant to.It is one small step in my life to stand up and introduce myself to you here in this community, and one giant leap to change not only my life but also those around me with similar mindsets.  

At the moment I have just launched my first marketing/lead generation campaign and am holding out for the perfect starter deal.

You need to keep generating them on a consistent basis and be sure to be focusing on motivated sellers.

Once repaired and back to "market value" condition, you now have equity and have acquired one of the several types of wealth that can be generated in real estate.

I would be happy to find a small, relatively safe multi-family that will generate 7-8% cash-on-cash.

Instead of a passive activity loss, here we will be talking about a passive activity credit - that is a credit generated from a passive activity (i.e. solar panels on a rental).The credit generated from passive activities will only offset the tax generated from income derived from passive activities.

@Joe S.You could build an ADU on the back to generate more revenue, turn it into a short term rental, or sell it.

@Dan Schwartz  I see a lot of huds in my work a day world... how lenders make up for safe harbor is junk fee's which they are not limited to.. most loans of this size will cost 4 to 5k to get funded... includes origination fee's and all the junk fees.I have not seen one under 3,600.00 total fees on the hud.. paid by buyer ... a lender simply cannot stay in business if they are not making 4 to 5k per file... they would close up shop and stop doing those loans if they could not generate that amount of revenue per file.