------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I'm trying to figure out in my head how fund model would make sense in this type of community. 

Just figuring my way around here and looking forward to connecting. 

@Jewell ArceneauxHow to drive ARV (my opinion)Improvements that drive the ARV the most: Roof, New Kitchen & Bathrooms, Flooring, PaintImprovements that DON’T drive the ARV as much: Windows, Landscaping, Driveway, Rough Plumbing & Electrical

@Jeff White That's what I figured.

For perspective, outside of SF you can easily get a place to rent for 2500 or so, figure another 1500 for day care.

So I just look up what rents are and figure the more rent the higher class?

A 40k program ought to come with an ironclad guarantee that you make 6 figures by year 2 (and aren't doing something illegal/unethical) to be even minimally reasonable.  

That will require a rough and final inspection. 2) When installing drywall you will need a nail/screw pattern inspection. 3) You will need to provide 'conditioned air' to these rooms..how are you going to do this and that will require inspection.Will you have to increase the size of the electrical panel?

Probably even figure out the status of the property.