Quote from @Zachary Engen: Ive read a few things about onlying being able to cash out refinance 75% or the purchase +closing costs, whichever is lower.

Demand was much higher when rates were lower - you might be able to scoop a solid 1920s Highland up/down duplex for 10% under list and 20% less than it might have sold in 2021 - but current rates erase any potential savings.

it's a lower risk way to get started.

Since it’s the largest home in the neighborhood, that can be a bit of a challenge, but you can turn that to your advantage with the right strategy.First, consider tweaking the price slightly—either lowering it a bit more to attract attention or pricing it closer to the higher end if you’re targeting buyers who value the upgrades and space.

This would lower your down payment requirements, lower your interest rate, lower your property taxes, and MAY make you exempt from state income tax.

A new build should require much lower maintenance expense vs a 100 year old home.Hope this helps.

Given this is where my major operating expenses fell (beyond taxes and insurance), keeping this cost lower, by average, helps my cash flow.I invest in older neighborhoods, so the 2-4 unit properties, typically have single water meter, maybe single electric, and many have radiator heat with a single boiler.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The lower entry costs compared to other markets, plus lower taxes, make it great for consistent cash flow.

I’ve had experience with both traditional and private construction loans, and here’s my take:Traditional Lenders: The process can be slower with more paperwork and stringent requirements, but they usually offer lower interest rates.