There are (at least) two considerations here: the class of the property and the class of the neighborhood.

Appreciation is something that I'm always taking into consideration.

Also, you must take into consideration that there are a multitude of reasons why a tenant doesn't pay. 

Now the question is... now that the average price for a condo in the Arts District is $1M+, will the next migration area be Boyle Heights or South of the Arts District 🤔You are 100% correct, if you're going to get free market appreciation, why wouldn't you add value as well!

I have since acquired one more SFR from them.At this point, after months of consideration, I arrived at the conclusion that residential properties did not scale the way I wanted them to.

please please please do not invest in cosmetics until you build your war chest. i own multiple fouplexes and need at least 15k reserves for apartment turns or other repairs ac heating plumbing repairs. if you haven't closed ask for credits in consideration other 2 units are not renovated.Good luck Cortes family 

In my opinion this sounds like a substantial investment, and there are plenty of solid multi-family renters in the following markets:DearbornDearborn Heights Melvindale Westland& other cities immediately North, East, or West, of Detroit You're spot on about renters paying less for a duplex over a SFH but as you progress in the multi-family market you'll notice the differences aren't much if you choose the right property, construction finishes/overhead, tenant screening processes. 

In my hi,blue opinion you should be thanking him for the (tough) feedback and take at least some of what he said into consideration.

@Sam Besong Wholesaling as you are practicing it is illegal in Massachusetts unless you have a license to sell real estate.Here is Mass General Laws, Title XVI, Chapter 112, Sec. 87pp, describing the activities that require a license:"''Real estate broker'', hereinafter referred to as broker, any person who for another person and for a fee, commission or other valuable consideration, or with the intention or in the expectation or upon the promise of receiving or collecting a fee, commission or other valuable consideration, does any of the following: sells, exchanges, purchases, rents or leases, or negotiates, or offers, attempts or agrees to negotiate the sale, exchange, purchase, rental or leasing of any real estate, or lists or offers, attempts or agrees to list any real estate, or buys or offers to buy, sells or offers to sell or otherwise deals in options on real estate, or advertises or holds himself out as engaged in the business of selling, exchanging, purchasing, renting or leasing real estate, or assists or directs in the procuring of prospects or the negotiation or completion of any agreement or transaction which results or is intended to result in the sale, exchange, purchase, leasing or renting of any real estate."

In addition to the mortgage, property taxes, and insurance, the projected calculations are taking the following expenses into consideration (5% rate for vacancy, 5% for repairs/maintenance, 5% for CapEx, and 10% for property management; otherwise the income figures would be higher.