I own several single-family rentals (SFRs) with Section 8 tenants, which have built significant equity over the years.

Value-add properties are great once you have a good investing foundation and the right teams in place. 

The way I did it is I built up total confidence through first education and second entrepreneurship.  

Quote from @Devin James: Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball build larger homes. average new build in our market is 2200 square feet, 4 beds, 3 baths, 2 car garage and sells for 515k. construction costs lower if design is good and find the median or average home sale price and push that up. my guess is you built too small. 347k is cheap. we target 429-479k price range in columbus ohio for single family homes and also only purchase close to urban core where premiums are 20% higher and we build smaller like 1500 sq ft where price per square foot goes up. 

Having local family gave me a built-in support system, market familiarity, and the confidence to manage a property from a distance if needed.

We got it under contract but then canceled the contract after some concerns with the foundation.

The success of that venture set the foundation for my career in real estate.

In rising markets, you might want to hold onto some properties longer to maximize your returns.By focusing on these areas, you can build a solid foundation for a scalable distressed property investment business and navigate the transition from individual deals to a thriving operation.ConclusionScaling a distressed property portfolio involves more than simply increasing the number of deals; it requires a fundamental shift in the way acquisitions, financing, and operations are structured.

With the equity you’ve built and the cash you have, you could also explore a HELOC or refinancing to open up more opportunities.

You have built a great foundation to work from.