You’ve learned a lot since you started the journey of investing in your first passive real estate deal: you’ve weighed all the differences between asset classes, zeroed in on your ideal geographic market, and put on your investigator’s hat to get comfortable with a few operators.

My lender said I should write an explanation letter to the underwriter explaining why I'm moving from my condo to a multifamily and of course I was honest saying I wanted it as an investment property and to use it as an opportunity to get landlord experience. 

You're essentially paying your Tenant $600 to sign early when there's a very good chance they'll just sign it at $850.Nothing has been signed, so write up a short, very clear explanation/example.

Risk comes in many forms, geographic risk, asset risk, construction risk, etc...

Feel free to contact me if you want a further explanation.

Hence a slight inventory increase and some geographic luck is producing a lot of properties there.I am not a the sky is falling person thinking the bubble is about to pop, but a healthy correction is likely in my opinion in the next year.

@David D'ErricoThe advertisements you see on the BP site are placed by Google and the ads you see will differ from those I see given our geographic separation among other factors.It does not automatically follow form the appearance of such advertisements that they are site sponsors (other than indirectly though the services of Google), nor that the BP team has vetted their presence.

And I dug into it and the only explanation could be the hidden fees which my company and the 401k provider does a terrible job of explaining.

Based on ONLY geographical location, my pick would be Phoenix.  

@Charles H.If your activities rise to the level of a 'trade or business', a general non-specific search in a new geographic area would be start up expenses under IRC Sec 195.Once you've identified a specific property, expenses are capitalized and added to the property's basis if acquired.Expensing the costs, even through an active LLC/ "investment LLC" is not correct treatment and will get adjusted should the IRS ever audit you.Encourage you to work with your tax CPA/EA as it's very possible not all of the travel expenses are 100% business related.