Have any of you used a similar tiered return strategy?

It seems there are a few other parts of Jacksonville with similar budget range and that could be viable, anything near the beach is definitely out of the question with my budget. 

I imagine this is a similar model to Redfin's associate agent program that pays by hour/tour.

It seems like location would be especially critical with pad-split (and similar systems), but I’d love to hear your thoughts on what to watch out for in terms of zoning, safety, or demand.Also, I’ve traditionally rented out units the regular way, so I’m curious how screening tenants works for you with the pad-split (and similar) model.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

My custodian does not have a money market or similar sweep account to keep idle cash earning.

Are there any similar surrounding buildings?

You have to dig a little deeper there are questions that need to be addressed and VOE's filled out with specifics in order to use certain incomes and "stipends".Similar to a traveling nurse who get housing, meals, and other income. 

For instance, in places like Austin or Chicago, I’ve noticed similar deals pay off when you have the right property management systems dialed in.

Hey @Erik Applegate, I don't think there would be much change in pricing in regards to similar places nearby.