Larger properties spread your risk.Be Ready for Some Sweat Equity: Many first-time house hackers underestimate this part, but putting in a little elbow grease can drastically improve your returns.

I am in the Virgin Islands, also challenging to find lenders.  

Replacing countertops, though, is a capital improvement and usually has to be capitalized and depreciated over time.

I run two big groups on fb and we have been bombarded by big pocket end buyers so closing big commercial deals 10M+ is not the challenge here. 

This is because the envelope of the home was not built to modern standards and making functional living area can be challenging unless you have a lot of real estate to work with.

Challenges?

Also, I’ve purchased occupied foreclosures in Connecticut and have managed the eviction process, which has been challenging but manageable.

@Maria JeanetteHere are some of the downsides of putting real estate into a self directed IRA or 401k.No tax deductions: You can’t claim deductions for property taxes, mortgage interest, depreciation, repairs, improvements and other property-related expenses.Property expenses: All expenses, repairs, and maintenance costs must be paid with IRA or 401k funds.

I hope you find some useful information and best of luck in improving your personal finances and starting your investing career. https://www.biggerpockets.com/forums/25/topics/589...

I relate with knowing I want to build my real estate portfolio but feeling overwhelmed with how to choose a market (I live in Seattle which is similar to CA with regards to the price to rent ratio challenges), so I wanted to share my current plan.