The downside is more maintenance and repairs, more toilets, stoves, water heaters etc...Depending on what your goals are for the investments and your acquisition strategy would point you toward one asset class or another. 

This will work no matter what, but you can get there faster if you can generate equity through remodel, take advantage of market shifts or buy at a discount (next to impossible at the moment due to tight inventory, but that may come back).The other component most new investors underestimate is you have to become an excellent operator.

I want to add a macerating toilet and a shower.

The home was built in the 50's and is in need of around 30k of remodeling to get rentable.

Hi all - looking at purchasing a home needing a good bit of interior remodeling.

The $800 number isn't far off for 70K, but that's only with a fresh remodel. 

If I get a response from one of my "We Buy Houses" ads and the house doesn't need any remodeling.

New kitchen, new FAU, New flooring in main area, 1 new bath remodel and only added a vanity in the second bath.Our target ARV was 285k- We hit our profit criteria at this number.Sale price 305k on 4-15-16Net profit- 35kI didnt have very good before pics- You might notice we used all the same material- paint colors, tile, flooring, kitchen cabs, etc..- Helps keep the decision making to a minimum.

I usually subcontract out myself on our remodels so I don't have a GC contact unfortunately.

Currently doing a full bathroom remodel.