That's what keeps investors like yourself holding on because the cash flow is non existent between management fees and cap ex which may not present itself in year 1, but when it does, its crushing in these lower price point properties.

This allows investors to get into the market at way lower price points.

I am in Milwaukee, very hot rental market.Whenever you have an issue like this, think with an XLS and project dollars, for example:- 2 months lost rent: 2 x $2000- 5% lower purchase price: $15,000 

A few weeks ago I wrote a summary overview to our investors in both funds to prepare them for probably lower returns in the short run from potential higher defaults.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

. #2 many private/hard money lenders will consider furnishings if the deal, including the furnishings, falls into their deal box.Believe it or not, it might be easier to include the furnishings in the deal with a significantly lower down payment if there is other rehab work to be done.

To Chris' point, you can find lower options if you handle some of the management responsibilities.

This often means a smaller down payment and lower monthly payments compared to a traditional bank loan, especially since the seller may not be tied to the high interest rates banks are offering.Another option is a land loan from a local credit union or bank.

Very few people have reached financial independence...and others that have reached it that keep working do it for personal satisfaction.Incidentally, most of us consider real estate, done properly, to be lower risk than the stock market, which is why we invest in it.

Lower end wines are losing favour to higher end wines despite lower end wines outpacing high end wines of volume growth.