Quote from @Paul Lucenti: Would you rather have monthly cash flow or would you prefer a quick pay day after 3-6 months?

As long  the tenants pay the rent each month, increasing their rent will be very tough and getting them to leave will be extremely tough. 

Will it pay the full PITI plus Capex, management fees, maintenance etc?

If you have the stomach for it and understand the big picture it pays off. 

There are many reasons why I haven't pursued the arbitrage model, but mainly that it takes too long for the ROI after investing all your time and effort into buying furniture and renting and paying utilities.Let's say you rent an apartment for $1500 and you spend $7000 to furnished it.

We also see a lot of ground up projects in HCOL areas that do particularly well. 

At full occupancy, the cash flow I just keep in reserves for repairs or help pay the principal. 

I do not have 5 layers of management that make my rates higher, no lender I work with pays for my office space, licensing, benefits, marketing department, compliance department.... 

@Simon Packman Not sure where you’re located but I have Vermont Mutual in Northern New England for most of my properties and the most I’m paying for any of them is around $4400.

I would love to meet any real players in the area who would love to pay it forward and help someone green like myself.