The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

Focusing on what you can control, like consistent effort, really sets the foundation for success.

If you’re doing a straight forward investment property purchase, I recommend you try to connect with an investor focused mortgage broker or lender.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

The term ADAPTIVE REUSE 2.0 is not a new concept but a new focus.

The property is located near two colleges, so I’m focusing on student tenants and planning for 12-month lease terms.Do you have any tips or advice for renting by the room?

My wife and I are new investors transitioning into Commercial Real Estate, with a focus on multifamily properties.

We focus and specialize in "on market" MLS deals. 

They also appreciate honesty and transparency so they can make decisions fast without any surprises.Some of the top skills that you can focus on are:Comping: Knowing your comps inside out is a must.Negotiation: Being able to connect with sellers and strike a good deal is huge.Networking: Relationships with buyers, agents, and other wholesalers are invaluable.Also, Get to know your local market being able to talk the talk in your area will help a lot.

It's a low barrier to entry and a good option for you, I would highly and I mean highly recommend you focus on location.