Interest rates at the time were running 18-19% but capturing a beautiful old tired home that would appraise much higher after rehab was my exit strategy.

I have been married and divorced twice now and I have 2 beautiful children Brooklyn (13 years old) and Boston (10).  

It allows you to diversify into a portfolio of homes as opposed to putting all of your proverbial eggs in one basket.Be cautious tho as over the years I have witnessed countless investors buying properties in crappy areas, for more than they are worth and being passed on to crappy property management that nickel and dimes them to death (I guess all of those 15% "awesome" paper cap rates and promises of financial freedom aren't that awesome after all...)This is not just true for real estate deals but life in general (Your "piece of paper" degree does't necessarily dictate success in your chosen profession or your business)Real life experience is different to what any "piece of paper" says.In all reality guys it takes time to build financial freedom, and the more you can diversify your risk across multiple properties in your portfolio the less risk you bear in the long run.I may not be the smartest Aussie you have ever met, however I do understand a few basic rules that I follow on every acquisition I make.Strength in numbers, cash only, patience, and discipline.Let's talk about Strength first.Price point plays a big part of "strength in numbers" as it is safer to acquire 5 homes for a total of $350,000 as opposed to one for $350,000.What happens if "that one" property goes untenanted for 5 months?

The beauty of CRM systems is you can automate and track and do much more than just manage a list.

I mean if you think about it renting a beautiful home to raise your family in that you don't have to manage is the American dream.

CA benefits from a glorious past with tech industry and entertainment industry to name a few, that were built before CA became effectively a one party system; and this "People's Republic" unfortunately also "occupies" more than half of our beautiful West Coast with prime real estate.

Update: we renovated, it’s beautiful and now more desirable and most importantly, it’s rented!!

It’s a really beautiful early fall weekend. 

I think in the process of being the Older Wiser More Experienced Investors out there, the literal original question has gotten lost in the smog.To wit: What IS real estate?

@Tim Swierczek the finished product can look like whatever you want it to, that is the beauty of new construction :)My thoughts are to keep things simple and instead of trying to re-create the wheel go off of what other people already have.