Most of us underestimate property taxes (I did too). We take the seller’s current tax bill, drop it into the spreadsheet, and call it analysis. Then the city reassesses, taxes jump, and the cash-flowing deal turns int...

Hey BP fam,
I see a lot of investors (especially starting out) trying to save that 8-10% by self-managing. I get the math, but honestly, I've seen it backfire more often than not.
A few things I've noticed that usua...

What I mean by that is the Insurance trap, when you buy a property subject to the existing finance and you go and have the insurance policy switched to name you as the new main insured party, the lender will be listed on that insurance policy as an "additionally insured party" and will be notified of this change.  

I wanted to share a recent deal structure that may be helpful for anyone sitting on equity in a high-cost market.A client recently:Did a cash-out refinance on a California primary residenceUsed the proceeds to purchase a single-family rental in MichiganIs closing in early FebruaryWhat made this work smoothly:No relocation requiredProperty manager is picking up keys immediately after closingClient transitions straight into passive monthly incomeNo short-term rental or active management involvedThis wasn’t about chasing appreciation—it was about:Redeploying trapped equityImproving cash flowKeeping the setup simple and scalableI’m seeing more CA homeowners explore Midwest rentals when local numbers no longer make sense, especially when paired with professional management from day one.Happy to answer questions around:Structuring equity deploymentOut-of-state investing considerationsWhat to look for (and avoid) in Midwest rentalsHope this helps someone thinking through similar options.

Heat tap works pretty well....The P-trap is a very very easy thing to forget can be an issue. 

Nice that he can afford to, after making his millions in real estate.The best thing I learned from the book when I read it many years ago was that working for others is a trap (you want to be the employer, not the employee!)

I’d stay on the ownership/investor side and partner with experienced operators or management teams who already know this space.I’m hoping to learn from people who actually do this and can share what it’s really like:• What actually works vs what just sounds good online• Common mistakes / traps to avoid• Regulatory reality• What “healthy, realistic” numbers look like• What makes a good owner–operator partnershipEarlier in my career I lived mostly in the analytical world.

"Right now with cash flow numbers it's a good way to trap a lot of capital at low margins"Yes a lot oof investors are buying at stupid numbers right now.

Given the low monthly return that makes it virtually impossible to return my equity without selling, I'd have to accept my equity being trapped in the deal until we sell sooner or later.As stated earlier, the initial plan was to flip which would significantly simplify things, but we want to hold it if possible, we'd just have to structure it fairly.Perhaps a preferred return?

Maybe there is a sink or an old laundry hookup/drain that isn't being used where the trap dried up allowing sewer gas to enter.