You have to be honest with yourself, understand the risks and assess if you can afford the negative cash flow.

Schloe talks a lot about how amazing of a team he has found, so congratulations on building a group that is a win-win for everyone involved!

And by higher risk I mean higher risk of tenant issues  generally older homes with a lot of long term differed maintenance. limited opportunities for any REAL appreciation . 

But if you can find an investment that pushes out beyond the next 2 or 3 years into a  “different” financial environment you might have a better risk reward return. 

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

I hope it works out for all involved.  

I think I've been changing my 3 prong connection electric dryers to 4 prong for some many years now also.I should probably confirm w/my electrician company but at the risk of making another mistake, I'm about to press Post Reply...

On paper, it looked brilliant..cheap money, quick turnaround, and a profit projection that made his eyes light up.It taught me that the real risk isn’t just the cost of capital, it’s the predictabilty of your exit strategy.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

How about the risk that a landlord has?