The big one is worth 850k in a class A/B north side Chicago neighborhood and it runs super smooth, never an issue and tenants all on auto pay.

I can say from having taught classes on these loans that your contractor will be the biggest key to your success.

I don't use padsplit (weekly rentals); I rent on long-term leases in B Class neighborhoods.

The only place this would appear to make sense is in Class D neighborhoods which could cash flow.You have rights to income but nothing else - sounds like an unsecured note at the end of the day.Chris you make good points.  

While I agree a lot of $ flows thru US, its still the everyday middle class person that drives the economy.I read two interesting datapoints today:1.

It’s a blessing (the reason you found real estate in the first place) and a curse (you probably get distracted easily on what asset class to focus on).

My point being, having a reliable team here is a must.Dialing in on what class neighborhood and what kind of property you want is as key as your metrics, especially given that much of our housing stock is ~125 years old --- at least in the city.

I know you feel you are on top of it, and it sounds like a class A or B.

Invest with syndicators who have a narrow niche and proven track record.For example, if an operator has done 5 or 6 workforce housing value add deals in Dallas, and they are offering a similar deal now, that would be encouraging.if however, their current deal was a brand new luxury Class A building in Charlotte and this was their first acquisition in Charlotte and their first class A deal, as an LP I would pass.Find operators who do one thing and kill it in that space.Find operators who own or have gone full cycle with similar assets in the same market.For example, my firm, Spark Investment Group has a very narrow niche - sub 100 unit MF or BTR in Greenville SC.

I'm looking at Class B properties in up-and-coming neighborhoods and plan to self-manage once I relocate.