Like ANY property class, there are only 3 components that have to be done right to make it work:  Acquisition, Rehab, and Management. 

Even better is tailoring your offer as to allow for multiple exits in case of the unexpected (interest rates may be at 8% in 3 years - who knows?).

All strategies can make a lot of money, but the key ingredients missing in the 1-4 family strategy that you have set out is that there is little no value add component and no large scale.

@John Mitchell hi John, I have a fourplex in the Peninsula, a couple of Airbnbs in the Valley and a few commercial properties elsewhere in NS.Prices seem high right now, vacancy low, and inventory scarce, so in my opinion combining a house-hack with a short-term rental component would be a great way to get into the market, gain equity & experience.

This is why for my clients the non-binding LOI has a confidentiality component in it.

We learned a lot about working with contractors, estimating repair costs, unexpected expenses, sometimes paying a professional to complete the work is worth your time and money, cheap labor is not always cheap

That said, if you have a loan product with an interest only component that flips to a fully amortized rate, yeah, there is a direct correlation to default.

I've provided some more detail below:Purchase price: Less than $5k Type of house: Baltimore (city) rowhouse Comp (only have 1 available): $55k in Dec. 2019. -- *this comp is a few doors down*Thanks again!

Capex is more than roof and HVAC - literally every component in the house has a finite design life and will have to be replaced at some point.

Savings for those unexpected repairs, etc is a must.