If you are in a lower asset class things can go the other way. 

They're working class or in lower income areas. 

I still think this might work, but I will need to look at it from a few different angles.I like the idea of mobile homes because it's a lower cost way to get started.

Sometimes too portfolios allow you to include lower valued properties that might not be eligible for regular DSCR lending. 

Expanding to nearby areas with lower costs and strong rental demand can also make sense.

Quote from @Jaycee Greene: it all depends on the credit scores, but consumer mortgages tend to have lower interest rates than commercial loans.

I’ve been in a similar situation, and I think the idea of buying in lower-cost areas to renovate and rent out is a great play.

ABC Baltimore’s appraisal was still lower than $106,000 expected per contract.

query=garage#sear...If you can rent a 2 garage at $450 without spending ~$150k for a garage ADU conversion, no work/risk of the ADU conversion, the lower maintenance/capex, easier eviction, no rent control, less tenant interaction, it will not convert your SFR to rent control, etc, it seems superior to the garage ADU conversion.  

We focused on 1 and 2 br properties long before MTRs became trendy because they have lower price points, less competition, lower expenses, and while the tenant pool is smaller, so is supply.