Then there is the time element with holding costs.

Are there any rehab costs?

You need to know what things cost.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Vacancy hurts a bit more, but the biggest issue with renting out large homes is turnover cost.

If you buy for $110k you can finance $88k if you come out of pocket for the $22k down payment plus closing costs. 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Here's a fundamental explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

There will be a huge gap between coverages and replacement costs. - Renters are majority uninsured. - In September 2024 the FAIR Plan had $6B in exposure to the Palisades alone.

Even if it was $100k, 32 units would cost $3.2mm to build.