However, my main question is how investors determine a reasonable target, especially since some investors with access to higher capital are able to target projects with higher returns than the easily accessible passive or traditional opportunities. 

It also helps to identify how much capital, or access to capital, you have. 

While home prices have cooled slightly from their peak, affordability remains a significant barrier.According to the National Association of Realtors, homes in the U.S. spent an average of 36 days on the market in January 2025, a slight increase from last year but still well below historical norms.

Also, explore creative financing options like seller financing or private loans to reduce upfront capital needs.

if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

Market timing, properly acquired property, personal capital available How did you find this deal and how did you negotiate it?

If so, they can sell within 2 years and not pay capital gains taxes on the sell of the home.They could take that money and buy multiple rental homes in other areas if they wanted, or use the money to downsize in to a different home while still having money left over.

You don't need to use your own capital or credit.Lower risk: Since you're not buying the property yourself, you're not taking on the risks associated with ownership, like vacancies or repairs.4.

I have not lived in the areas, have a friend that lives in Laconia so likely will be looking for a 2-4 unit that we will live in and work on fix and flips to build capital for the next purchase.Appreciate the support everyone! 

I mainly am curious how people have raised capital for their first properties.