The quality of tenants also seem to be much lower even in the nice areas compared to what I see here (and most of my stuff are small condos in Lowell, so not exactly a "luxury" market here).

Dawn, you're living in luxury!

It was a new luxury ocean front condo selling by the developer.

However, except for the once in a lifetime great buy, you will end up with low income property with low price appreciation potential.Assuming a 50% net operating income, the 2% rule yields 12% return on purchase price, as if purchase price is paid in cash.On residential investments I buy class A high rise luxury condos, and expect a 7-8% return.

It's a luxury aesthetic and is driving these prospective tenants to (theoretically) pay a little more.

I could probably buy a luxury vehicle or two with no problem, but I drive a 10 year old pickup truck instead.

I plan to take out a loan from a bank to finance the first FLIP, i always read bout Hard money and OPM but all of that comes with vERY VERY HIGH INTEREST RATE or knowing someone who will be willing to drop cash with some body with no experience or track record (I do not have the luxury of knowing someone).Anyway I am here to take any advice on my journey and I am excited!!!

Their lifestyle does not afford them the freedom to do so.Effectively, just like being dependent on your employer for a paycheck limits you as to the hours you are able to devote to your own pursuits, the more you are dependent on other people (or the government), the less FREE you are.You begrudge them for their hair and nails, I feel sorry for them that this is the only type of luxury they will ever experience and that they are happy being in the little box that they trapped themselves into.

In other words, he's accounting for his increased risk when he makes the loan (his risk being increased by virtue of the fact that my risk is decreased).So, given the situation where in option #2 I'm only risking $20K (and again ignoring any emotions I might feel), who has more financial risk -- the guy paying all cash or the guy who borrows some?

Also, remind her that many of your units don't have the luxury of ceiling fans and that if it makes them feel safer, you'd be happy to install a flush mount light fixture instead.If they do decide to act against you, it's out of your hands anyway but I think if you put it this way they'll think twice about crossing you.