The professional investors take the amateur investment analysis many steps further by eliminating the dogs ($100, or $200 cash flow) and purchasing only properties at discounted prices where major profit (100% ROI) the day the property is purchased and by stretching out the projections to calculate what the RIO is the day escrow closes and you increase the rents and project further 1, 2, 3 and more years to see your ROI when you increase your rents every year.If (when) you need help with the numbers, just ask how?

If an amateur Real Estate Investor doesn't have enough cash to purchase a property, and instead chooses to tap into their 401k for the down payment, what are they going to do when the big-ticket repairs unexpectedly appear, I.e. new roof, new heat system, going a few months with vacancies while the mortgage, taxes and utilities still need to be paid?

Don't be in the same boat as all the consumers and amateur invests who used the Greater Fool Theory of investing.

Real estate agents laughed at the suggestion stating the market will only go up ...The real estate market is once again flushed with amateurs pushing prices up and manufacturing demand.

That will save you much of the grief that the amateurs are talking to you about.Good luck,Mike

The third surgeon said, "You guys are amateurs.

But overall I am an amateur economics hack who is just reciting Ludwig Von Mises, I think Mises makes a lot more sense than John Maynard Keynes.

In my admitted amateur perspective, I think you are pretty spot on with the higher end units and higher end rents.If I were in a situation to pick up some multi-family B or even C properties and fix them up just a bit, I think that might help fill some of the potential gap created by adding more high end places.When checking rents on SFH, I like to check the nearest apartment complex to see what they are offering in terms of rates and incentives.

If you think it's expensive for a professional to do it, wait until you hire an amateur.

Personally I don't see any potential for cash flow with buy and hold in this area but I am an amateur investor as well.