Cash-flow focused investors are seeing the most success when they scale to a larger sized portfolio so if a property stops performing the others will absorb the costs.

You can also have to scale higher as he performs better or do a certain dollar amount after a milestone is reached.

I am also part of a full scale co-living management team that assists with property evaluations, Co-living training, acquisitions, setup construction, tenant interactions, and property management. 

I am also liking the short term rental arbitrage model as there might be more monthly cash flow revenue, depending on the property, location and market of course,  but the downside is that there is no appreciation and no equity pay down overtime but the exit strategy is fairly simple and easy to execute and you can always scale-up the number of units and stay or go to new STR markets if you need as you do not own any investment STR properties.

Start with a smaller property and gradually scale up your portfolio over time to build equity and minimize risk.

Having a virtual number has been necessary to allow me to scale and to take some time off occasionally.

Scaling to a property count is foolish especially in this environment, scaling to portfolio value(while leveraged) is the key. 

Would this potentially make it legal for sliding scale fees to be negotiated? 

Some do really well and build massive portfolios, but you usually don't hear about all the failures on a smaller scale to lots of smaller investors. 

It talks all about why house hacking is a great investment even without cashflow and why you shouldn't give up one great investment because you can't immediately scale to the next one.