Yes rolling a profit into another flip house is a cost of the business but it will generate more profit on top the profit you already had assuming it’s a good deal. so you will have more taxable income,  not less as you think.Using the profit for personal purpose does not decrease your taxable income,ever. 

Most people seem to be holding steady on rents with perhaps just a slight decrease on some.I would say the sweet spot on rent is about $1500/month around Sherman, so for future purchase try to stay in that price range to hit that.   

The parties agree that the monthly rent set forth above shall be increased or decreased pro rata (effective January 1 of each calendar year) to reflect any increase or decrease in real estate taxes.

For tenants stuck in the Rental Trap, this situation will only worsen and the pool of renters with good credit will  decrease.

Based off data from the fed and bloomberg the consensus is the federal funds rate has about a 60% chance of their first decrease in the June fed meeting next year.

Calculate the increased rents providing more and more cashflow, decreased loan balances leading to more and more principle paydown.

I do think rate decreases will put upward pressure on prices.

When the market turns up, prices also go up quickly.We all read stories about immense amounts of capital - dry powder - poised to jump back into the market…….Assuming there are deals to be had…….I submit for consideration, the retail investor isn’t going to get them……it’s the groups with Millions and even Billions in the bank that will get them……While returns on multifamily have decreased - at the present time, solid deals run by experienced operators might yield 13% 14% IRRs……….and 16% or 17% annual rates of returns…..On a 5 to 10 year horizon, I believe investors will be better off continuing to invest in real estate than Treasuries……..So while parking the money in Treasuries may feel safe - deciding when and where to re-enter the market is a difficult decision.I believe retail investors will do better investing with a long term horizon - less focus on timing the market or getting a deal - time in the market v timing the market.Thoughts?

I believe I have learned enough to decide that Multi Family is the place to start so as to decrease the risk of the cost of vacancies.

When the tenant knows the damage deposit is drained, their incentive to not damage the property on the way out decreases, added to the fact they have already skipped last months rent and screwed up their reference anyways!!!