Simply use a make sense number, like you have listed of 1%.In the model simply make an assumption of sale somewhere in the future.

That is the business model that works best.

It is possible for the national index/etf/itb to be soring and the city/town in which you hold your properties just lost a major employer or vice-versa.For most real estate investors your best hedge is to buy your properties well - when performing diligence model the property with rent set under market, a sufficient allowance for vacancy & bad debt, and realistic to conservative operating expenses.

I'm just going to stick with my current model of refinancing with local banks into commercial loans.

We remodeled the first apartment, and used that as a model (along with drawings) to rent the other floors on spec.

Otherwise buy what you like, is making you money and fits your model.

I would suspect you can find those neighborhoods right outside your $300k neighborhoods.You are 100% correct that you can get stuff like that a little farther out.Assuming you are talking about a wholesaling or rehabbing model it works well.

Year 2 will be much better, with a scalable, sustainable model.

They want to each invest in two aspects of our buy and hold model.

Glad to see that you are having success with that model.