This is great for high income earners because normally the added income will be taxed at your marginal tax rate.With that said, real estate investing won't likely decrease your taxable income unless you or your spouse were designated as a real estate professional.

What's most interesting to me, if you look at the chart below, is that even as inventory climbed this Spring and into Summer, the Average Days on Market dropped.Those numbers are for single-family homes, and you're looking at multifamilies, but I could probably show similar stats for multis in NH.Given that it's a supply-demand squeeze and not some distortion in the market (like easy credit), I only see two reasons the market will really shift: a decrease in demand, and an increase in supply.The shortest route to decreased demand would be a rise in interest rates. 

I am searching for deals using the 70% Rule to BRRRR a townhouse in Alexandria, VA, but keep running into issues related to decreased inventory and high listing prices. 

In the 2008 recession in the USA, when people lost their homes and foreclosures were through the roof, rents increased and the vacancy rate decreased.

Both the City of Austin and the MSA on a whole saw decreased days on market, down to 13 days, highlighting that inventory is moving quickly when available.

There is a cost efficiency where at a certain point cost per sqft decreases the more that is added (both construction and value).

This doubles your total PV and your CF (that's the big one).When you repeat each strategy, you're only adding one property at a time, and decreasing the CF to the refi property each time doing the refi strategy. 

If you include the $40k rehab as cash outlay, then your CoC return decreases to 0.7% ($410k ARV) or 1.6% ($390k). 2.

You want to decrease the potential for conflict because conflict comes to you.

Keep in mind that property management will charge 20-25% so that will decrease cash flow and could even ruin the deal, depending on your desirable return.