Improvements that DON’T drive the ARV as much: Windows, Landscaping, Driveway, Rough Plumbing & ElectricalI agree with @Jaron Walling about meeting the appraiser at the property and providing documentation.

We were shocked at the cost of goods, lumber, cabinets, paint, plumbing.

To maximize returns, ensure compliance with local regulations, prioritize owning the land, and offer student-friendly amenities.

Never invest in any city on this list of the 50 most dangerous US cities.Low operating costs: High operating costs are one of the driving factors for many companies, leaving states with high taxes, regulations, and other costs.

I saw an example recently in Bloomberg about how local regulations can really shape a landlord’s experience, from what I’ve heard.

Opting for mid-grade materials will help stretch your budget.Structural/Mechanical: If the home needs a roof, HVAC, plumbing, or electrical work, that can take a big bite out of your $50k fast.

And the changes, such as regulation, city development, traffic flow, building views etc happen very quickly. 

A good property manager can help with tenant screening, enforce lease terms, and handle evictions more efficiently if it comes to that.Require a Larger Security Deposit: Within the bounds of local regulations, a larger deposit can provide a cushion in case of damage or unpaid rent.Consider Rent Guarantee Insurance: Some companies offer insurance products that can cover lost rent in case of tenant default.

This is a highly regulated activity by the CFPB.

Build a strong team, prioritize cash flow, and take the time to understand the local market and regulations, especially for development projects.