IF all projections are met and the property is sold after 5 years it will be about a 10% annual return after all capital gains taxes are paid. 

If talking to more builders does not work out to join you on transaction #1+ and you have enough capital and heavy rehab experience along with a GC / builder doing the project many lenders out there will offer you a lower leverage loan for your first project on your own.  60% finished value and 75% LTC is probably achievable without a builder in your company for the loan. 

Then your "loss" is only $700 more per month than what it is now, and if you live there at least 2 years and can manage to sell for a profit you won't owe any capital gains assuming you lived there first.

Waiting until market downturns might limit access to capital.

For me having that capital available for a deal is very important.

For example, sharing details like an example property address, how much of your own capital you're able to contribute, your goals for the property, and what your exit strategy looks like can all help potential lenders better understand the situation and make informed decisions.

I'm actually keeping an eye on some spots east of the gigafactory; there's a lot of buzz about potential there.Would love to swap insights and maybe grab a coffee (even if virtual) to chat more about how we can navigate and capitalize on these changes.

- if you have little capital to start with, house hacking is typically the best way to go

I am sure many would  consider other investment strategies besides  continually recycling their capital collecting  homes that are propped up with appraised values that are not attainable if the properties were marketed for sale.   

Phoenix has emerged from the pandemic as one of America’s eviction capitals.