This would allow you to indefinitely defer all of the tax if you sold, and use the tax you would have had to pay, to purchase something nicer in an area with a greater growth potential.   

Hey everyone, I’m trying to decide between purchasing a single-family home or a multi-family property for my first real estate investment in Detroit, and I’d love to get some advice. 

The only two ways to rectify this are (1) purchase the property far below market price or (2) significantly increase the property net income usually through some method of “repositioning”. 

However, a common benchmark is aiming for at least 6-8% cash-on-cash return based on your total investment (purchase price + rehab + closing costs).Always factor in appreciation potential, tax benefits, and personal risk tolerance.

Quote from @Brendan M Hornung: I reside in Southern California and started my investment journey in March of last year by purchasing a sub-to single-family home in AL.

These are things at the high level I want to be looking at for all my real estate purchases. 

I've found an off-market property that would require $175k purchase, $35k down, $20k in repairs, with a conservative ARV of $235k. 

I'd say if you are looking for commercial real estate wherein the purchase bought the property in a corporation then PS is not the best place for lead generation and skip tracing. 

Quote from @David Cherkowsky: Quote from @Sasha Mohammed: Hi David,There are lenders that will allow you to purchase via a DSCR loan using STR income to qualify.

Being able to purchase a property with only 5% down means you can leverage your money way more effectively.