I sometimes advise buyers to get an under-rented property that may be below market rent, maybe do some upgrades, and after rents are increased you'll be close to or above the 1% rule if you don't start out that way.   

I was and still proud that Lane can upgrade his identity from BP single-family landlord among us into syndication.

I'm not overly interested in purchasing properties and having to deal with tenants, broken toilets, etc. - my day job keeps me pretty busy.  

You may have the tenant on a technicality in that they didn't report the broken disposal and can't claim they didn't have time since they had time to pack their belongings and move out.

I think there is a diminishing marginal benefit to upgrades you can do increase cash flow here given most things in your home is upgraded.

When a guest calls because the door lock is broken, I have to pay our person to 1) Travel to the site to assess, 2) Go to Lowe's or HD for the part, 3) Return to the site, 4) install the part, 5) travel back home.In the mountains of Tennessee, that can be a 4 or 5-hour process really easily. 

Hey BP I’m upgrading the washer and dryer in my duplex and debating on whether or not I should install coin operated ones.

Obviously this doesn't make a lot of sense from a cash flow basis but if we were to refinance it later on at a lower rate, after we do some upgrades, that could significantly help us but the reduction in cash flow is concerning.If we take the equity out and truly Brrr it, then we are doing better because we avoid the lower value mortgage but can finance at a higher level after reno.  

We just finished two single family homes that were in very good condition when we bought them and we still spent 25k on one and 35k on the other on cosmetic upgrades.

Talk to enough homeowners and you'll soon find someone willing to sell at a wholesale price, especially if the owner lives out of state.Driving for Dollars: The last method is to simply drive around and look for homes in disrepair... things like uncut grass, broken down cars in the driveway, or properties that could really use a fresh coat of paint.