So understand every bit of risk is important.

@Nathan Gesner My justification for taking the risk is that I have a solid W2 job so I can afford to take a hit for a couple of months for vacancies and maintenance.

In most states, foreclosures can be very risky:1) They are often occupied and you can't approach the occupants to see the interior.

Class D is too risky for us, given this is our first venture in 5+ MFH.

Understand Proposition 13 for property tax benefits, local transfer taxes, and strict tenant and rent control laws.

The reality is that they should not want to invest in your first flip because it's too risky if you have never done it.

If you buy with a tenant in place, you save yourself the hassle of paperwork and inspections upfront, but you miss the chance to screen the tenant yourself—which can be risky.

So then Nick ask everyone who is interested to learn everything there is to real estates (he explained earlier - to secure your future you got to have knowledge which then you gain control and thus less risk - i thought that made sense) to now stand up and go to the back and sign up as seats are already filled.

It's a very risky strategy if you do not have a solid exit.

So for the dollar amount, returns, and additional risk I decided to just focus more on my day job.