For EXAMPLE ONLY, if they invested $50k in a deal and are getting an 8% cash on cash return ($4k/year) and we decide to keep it there is a point of diminishing returns (IRR). 

My biggest questions are when does diminishing return occur.Price vs Sleep Capacity1 bed / 1 bath vs 2 bed 1 bath vs 3 bed 3 bath.

On top of that, I was paying for CRMs, websites, E&O, lead generation, marketing, etc.Lots of extra money going out + my own diminished production + non-performing agents = me being exhausted, discouraged and broke.  

Diminishing marginal returns apply after the 3rd bedroom. 3 bedrooms is the sweet spot, as far as appraisers are concerned, at least in my market. 

Joe, who knows virtually nothing about medicine except his own experience (which is real and lived, I'm not diminishing his experience), responds with: "Oh, man, that knee pain is probably from brain cancer, you should get that checked out, I'm telling you man, it happened to me."

Equity Trust charges based on the size of your assets, and the percentage diminishes sharply as the number increases.

The financing is my other huge hurdle simply because of how much of my margin it diminishes. 

The higher the better for how much in returns you get, but there's a point of diminishing return if the cap rate goes too high because it'd indicative of higher risk properties.

However, there is a point where closing cost and the 70%-80% required LTV diminishes the amount of equity that you're able to recapture.

But once the market has other competitors, the rates of return will diminish and approach a normal rate of return.