The difference is your cost of funds delta - Then calculate how much time and effort it will take to find someone who will lend at 12%.

Hey there, I am focusing on smaller MF properties 5-20 or 5-30 (still formulating my strategy) that allow for value add (i.e. there's a decent delta between the gross SF and leasable SF that would allow for another unit to be added, or garages that can be converted into maker spaces of some sort).  

Delta Colorado , Paonia?

The appraised value was based on 4/2 SFH with deltas for differences. 

@Joe Splitrock  I got e mails today from AA and Alaska airlines waiting on Delta LOL.My elite status has been extended another year which is super.However ALK went on to talk about what they are doing in the cabin.. they are not going to sell middle seats in CoachSo no plane will go out full.. if your traveling with family and want to rub elbows you can. 

The delta between renting and owning is $875/mo, or $10,500/yr.

Now compare that $120k delta to the cost of conversion, and you can figure out your ROI and whether it makes sense for you.You'd also want to validate the value by looking at comparable sales of similar triplexes.

Hey @Jordi ValadoWe use Delta Title and Closetrak Title for all of our closings!

There's about six other areas in Toledo you can specialize in (South, East, Rossford, Holland, Swanton/Delta, Perrysburg/Maumee) and each has their own return threshold...really none is a bad move so long as you stay the course and get the rent money where you invest!

In most cases you are not gettin a >10% IRR out the gate on new investments right now.When securities are at 5%, you should expect a larger delta in IRR for the extra risk and work/time into other investments.