As you move above $250k, DOM definitely begins to increase, thus making it a riskier, tougher market.

I have found that rates are pretty close from what I have found although it is tougher to find units for rent in a tri-plex to compare.

The catch 22 is if you pull money out, the payment goes up which makes the rental numbers tougher to swallow.

MLOs are more of a multifamily strategy that may be a little tougher to do starting out.

So, if the land value is higher than the home and the initial yard, you'll have an ag or commercial loan, a lower loan to value, which means a tougher route to refinance. 

My guess is that it will be tougher to find good renters at the $550 price tag.

With the high number of investors it is tougher to come across the good buys unless you have a good plan in place to find the deals others don't know about. 

I'm sure people who succeed in this niche have it broken down to make it easier and/or have a tougher stomach than I do, but for now, it's not an area I plan on getting into.Good luck to you!

Or do they sit down with you and have a tough(er) conversation about why your strategy won't work.  

Many multi family properties in L.A are subject to rent control and it seems that things in CA might become tougher for landlords too.