You do a 1031 to a new, larger property with even more depreciation.

I am swamped right now with my rental renovations & furnishings I am finishing up plus I typically work late, so I haven't been able to make it much lately.

Further, the property may qualify for larger loans based on the increased cash flow ability to service debt.  

In a situation where you were doing an arbitrage (renting it from the owner, then yourself re-renting it to someone else) your costs to renovate/fix it up while you're using it would be able to be capitalized and depreciated by you once your rental was in service (available for rent to others). 

They’re fully renovated (or in good condition) and often come with tenants already in place, so you can start making rental income right away. 

I have also done the math and my account over the next 20 years will grow larger assuming a flat 7% return by taking loans then not. 

Financial Highlights•Acquisition Price: $72,000•Renovation Costs: $35,600•Total Investment: $107,600•Funds: raised from personal savings and private lender How did you add value to the deal?

You might also meet title agents who have resources on, say, foreclosures or probates…and might recommend lenders who actually lend on more difficult projects (as the title companies also know which lenders can close and which are difficult).I also go visit open houses to see what sorts of finish to put on my renovations or to look for the next house or area in which to purchase.  

Pick one that is improving, homes being renovated and flipped, vacant storefronts being turned into cool coffee shops etc.Good luck.

Sure, they may be able to grow to a very moderate size,  add a few units, or trade up to a larger investment, but as for real scalability: NO.Why?