We are planning to hold it for 5 years and bought a rate cap to cover the entire hold period. 

They love the idea of wealth, financial freedom, but don't want to put their own financials on the line.

Considering most homes will not cash flow with 20% or less down, plan on 20% and most likely 25% down required - depending on the cash flow expectations. 

You understand some of the basic concepts, but also have some giant holes in your plan.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

@Rory DarcyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Yes we definitely encourage everyone to STICK TO THE PLAN when renovating!

I’m planning to do this for 3 multifamily properties all located in MA, each ranging from 2 to 4 units.

Just a simple 499 sq ft city approved plan, single story, 1 bed/1bath/full kitchen adu with living space.

While I currently live outside Portland, OR, I plan to begin investing in Tennessee.