Analyzing Rental Strategies 🏡 · Real Estate Learning Community

Analyzing Rental Strategies 🏡

Great question was asked in our community here on whether or not numbers should calculated for long-term rental or for section-8 to be a deal.

You ALWAYS want to run numbers as a long-term rental and make sure the deal is profitable there first before other strategies.

One of the biggest mistakes I see new investors making is looking at a deal that does not cash flow properly as a standard long-term rental and so in order to try and make a deal happen, seeing if they can create a better cash-flow scenario by running numbers as a mid-term rental, or an Airbnb, or a wrap or section-8 or rent by the room, etc.

These are all “cherry on top” exit strategies. What if you are struggling to find a wrap buyer, what if mid-term tenants are not showing interest, what if Airbnb is no longer allowed where that property resides?

When all of the “cherry on top” strategies are not working, having a property that can properly cash flow as a standard rental will always keep the deal profitable worst case scenario.

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