The seller will lose some rent, potentially incur costs to evict, possibly costs to clean out the units depending on your sales agreement.

Hi, I noticed there was new casita/ADU laws that went into effect in Jan 2025.

If you buy for $110k you can finance $88k if you come out of pocket for the $22k down payment plus closing costs. 

Let's look at your example of a roofer, assuming he owns the company.He has to pay for employees- they still get paid, even if they are not giving 100% effort.He has to pay his workers to go back for warranty work - effectively paying them to do the same job twice.He has to pay for equipment, even when it's not being used 100% of the time.- but the company he bought it from still gets paid.He has to pay for advertising, whether it works or not.- but the advertising company still gets paid.He has to pay for accounting services, payroll services, tax services, legal services, etc.- they all get paid whether he makes money or not.So, what's your point?

I own a 30-unit community and found it much easier and more cost effective than the 1-4 family and flips that I was doing before that acquisition. 

Analyze potential deals by estimating the After Repair Value (ARV), repair costs, and total expenses. 

To save those costs, you might want to stick to some year build and older, for example, if you cannot do inspections on the properties that you are buying due to off-market deals or something else that is hindering you (all sellers I buy from do not want anyone in the home till we close).

This is effectively legislation to open up the market to new prospects. 

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.

By focusing on effective time management, clear communication, building your network, and implementing a solid marketing strategy, you’ll be better prepared to navigate the ups and downs of the real estate industry.