That may be huge factor in your decision making. 

Although, it's very capital intensive and you have to rely on a lot of factors you can't control, contractors, interest rates, market shifts, realtors, buyers, appraisers, inspectors, material costs, weather etc etc.

If a property needs too much work upfront, it may not be the best first investment.4.Factor in property management costs—even if you self-manage.

@John Underwood what would you say was the key factor is making your LTR cashflow so much? 

Strategic pricing and market positioning were key factors in increasing the property’s value.

All of those are factors with conventional financing, but debt service loans do not. 

Code enforcement in Coronado is stricter than the rest of the city, and it does fall under the coastal commission jurisdiction.Depending on the parameters of the flip you can safely factor for an increase in your timeline for permitting of about 30 days. 

@Tyler GarzaYour "buy a new house, rent the old one, and trade up" strategy is a solid way to build wealth, but there are a few key factors to consider.

@Kris Lou Many factors go into PMC pricing:1) Locality (city/state)2) Neighborhood & Property Class (time to manage Class A < Class B < Class C < Class D)3) Property condition (slumlord properties hard to manage)4) Number of units (some economies of scale, but not as much as owners think)5) Owner expectations (some owners really want a personal assistant!)

Appreciation = Specilation/Gambling.We have little control over the factors that affect it, albeit for making improvements that will force it to compare with other likenpropetoes that are in a higher bracket.