Its a scary choice but I think if I start off with something on the lower price scale it wouldnt be a huge risk, besides the possibility of larger repairs earlier maybe.

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.

From a scale perspective I would probably rather have a 100 unit apartment building because at that point in time you are completely passive and have a property management firm running everything for you.

Where the argument breaks down for most real estate investors is the "spike" appreciation that they are accustomed to reading about in Guru blogs and seeing on the coasts ALONG with the scale of investments available.  

I recognized quickly that I couldn't continue to scale this thing by myself, so I brought in a partner who had the same vision and work ethic as me.

No, it won't scale, and it's no fun to deposit, but the firm, full, heavy feel of the envelope in my hand...oh yeah, it just does something for me...

To build in more passive you have to scale and add in many layers of management.

We love economies of scale.

If you need cash flow starting out and then want to scale to higher quality areas for appreciation, I have seen very successful BPers recommend this if you can be more hands on in the beginning:Buy C, then D, then F, then B, then A.

With a larger amount of mods you may realize some economies of scale where you will see a cost savings.