Not a lot of product in immediate area.purchase price $820,000renovation costs post purchase: around 350kTotal Monthly Rent: $7,000 (after renovation/ pro forma)Annual Rent: 84,000Vacancy: 5%Total annual Expenses: 25,000Annual Debt service: around 50kcash down: 500kall in costs: 1.2mANALYSIS:My analysis is that I spend money and my time to achieve a 5 cap.

And $75 annual fee to keep the HELOC.

Inflation was extremely high at that time and the value of that real estate was going up by a significant amount annually.

There are also some other restrictions like your annual income. 

To that, I'd say if you are going to do it, do it right from the start because if you end up exceeding the exception, the first deal could violate the regs because it is a rolling 12-month look-back.Loan Servicing: There are annual reporting requirements under state and federal regs. 

I know this because I have one LLC with my wife for one property, and then other properties in another LLC that is just me...so I need to stroke the annual tax prep check for the one LLC that my wife is involved in in addition to the other tax preparations.

Netting 5% on a deal that I turned in 60-90 days gave me annualized returns on capital of >20%, which fit my business model.

Do a couple of math examples and compare your rate of return, factor in potential appreciation (its a bonus but dont let it rule your decision making process) for example house A costs 100k brings a 8% annual ROIHouse B costs 50k but brings a 11% ROIthen the answer becomes obvious, you want to deploy 100k into 2 of house B.

You would need annual appreciation of about 2% to achieve that.  

That way you don't pay double fees (i.e. annual registration fees in two states).