He has roughly quadrupled his investment (without any debt) over the last 5-6 years.  

To give you something as a reference based on your budget (30-40% down with $1.8M), the general cap rates you will see in the Bay Area are roughly 3-5% https://www.loopnet.com/Listing/1047-Rich-Ave-Mountain-View-...https://www.loopnet.com/Listing/1180-Saranap-Ave-Walnut-Cree...You will find higher cap rates and more 20+ units buildings in SF, Oakland, and Richmond, but keep in mind of their stringent tenant laws. 

This property was in rough shape, so I tackled the essentials: new roof, plumbing fixes, and updating the interior to make it livable again.

This property was in rough shape, so I tackled the essentials: new roof, plumbing fixes, and updating the interior to make it livable again.

However, a few things you could do: You could talk with them & learn more of their story to figure out why their credit score is low as well as the type of people they are.

The quality I can improve but once the limbs have hit 1 inch the value is impaired moving from A to B or lower quality.I’ll process logs, rough sawn, kiln dry, planed.  

I would be happy to send a flyer, but I can't figure out how to attach it here.

@Adam OrtizRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Now, you need to figure out how to find deals and pay for them.

If I add up all the lender fees and my holding costs—like points, origination fees, and interest —I can figure out how much profit I’ll make and what my maximum offer should be.