Costing them thousands and making them lose out on homes.

Yearly increasing costs will, in time, eat up any profit they have per unit.

It’s one of the few places where you can realistically achieve solid returns without needing a massive upfront investment.If you’re open to exploring other markets, Detroit might be worth considering.

If one tenant has been in there for that long, there will also be some serious capex and turnover costs.

Very simple as Chris notes its just an up front agreement..

Hey Christian, have you considered house hacking as a way to get started with minimal upfront capital?

My biggest aim is to ensure that my long-term success aligns with whoever I invest with's long-term success instead of making their money on the upfront sale and leaving me on my own. 

CA maybe as high with their EIR requirements that cost 250k to 500k just for the EIR reports.

So I would caution everyone to make sure the replacement cost for your improvements will realistically cover your actual replacement cost in the event of a total loss.

There's also plenty of lenders who falsely represent the true capital requirements to originate their loans or are merely up front fee collectors.