Cap rates are one metric to use in these but do your underwriting based on multiple metrics, not just the one.

You can run multiple small deals at once, or run 1-2 larger deals at the same time.

Discuss COC return, run a financial analysis for him and a performance chart showing the ROR after multiple properties have been acquired and cashed-out... good luck.

I see so many people say they are using schedule C and they are not providing substantial services.This post should be referenced in the future when this question keeps coming up multiple times per year.

Hi, I’m Mike, a former Major League Baseball player with 15+ years in commercial real estate investing.

I used the same LLC for multiple properties and only changed it when I adjusted my strategy.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

The next buyer won't want a $5-10K a month loss, so they are going to buy the house at an appropriate multiple. 

They have answered your question pretty well here, but I would just be sure to track your basis very carefully when looking to doing multiple 1031 exchanges with depreciation.

Long-term, I aim to acquire multiple rental properties using the BRRR strategy to generate income and improve my community.