The model worked well for about 6 months and so on but went south after the strike and there were lot of cancellations and schedule changes so he eventually decided to terminate his lease.

AVM models like House Canary and the Zillow Zestimate should be used very carefully. 

In my underwriting model, I would have to stretch every assumption to the most ridiculous breaking point in order to come up with a 10% CoC return even on a distressed asset. 

I agree RE will go up and is part of our business model.  

A lot of the popular, no money needed, strategies like being a wholesaler, getting a partner to fund the deal, or STR co-hosting / arbitrage are a bit of a paradox because the people that have the expertise to effectively implement these strategies are typically the experienced folks that don't need no money down strategies to invest.

.- 3% rent growth and 3% HPA is being modeled in most markets.- Most current rates are in the 7-7.75% range.- Competitive pressure to deploy capital compressing dropping of rates. - Buyers are underwriting portfolios to as-is rents.- Machine learning models are helping to reduce risks.- Reverse migration to Rust Belt is occurring based on affordability issues elsewhere.- Scatter site is a defensive asset offering a lot of optionality.- Market conditions are challenging for scatter site hold unless you are underwriting a 10-year hold.- Setting up operations for SFR from scratch is very difficult.- One investor is buying at cap rates in 5s or 6s.

Their expertise will be invaluable, especially when navigating renovations and managing tenants.2. 

Is it a good idea to base an entire business model around something that breaks the law?

I'm sure there is a creative workaround but the trouble I am finding with BRRRR model is the Refinancing part!! 

Any tips on avoiding the subscription model would be greatly appreciated.