If you pick a good lender, they will have done a lot of deals and be able to have a rough sense if your construction costs are on par for the project. 

In reality, the neighbor can definitely get rough, but its fine to walk on the street there during the day and in some parts at night.

Additionally, last week I received this email from them as well...seems like a rob Peter to pay Paul scenario...none of which sounds good...Secured Note | 17% Interest | 12 Month TermMy partners and I are raising $5 million of short-term expansion capital for the Money Is Mastermind, our exciting and profitable growing business.We have roughly 1,900 paying members with a current valuation of $43 million.

Hi @Dave Harlan      I've done roughly 120 loans with them over the last 14 months on the broker side and have worked with just about every major lender in the space too.

Ya its been rough, but that is some good news.

I attached rough estimate on here, I included rehab on to the sales price 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

And unless you go into some very rough areas, you won't find double digit cash returns.

If you buy in such a city, you are almost guaranteed to have limited appreciation and rent growth.If a city has significant and sustained population growth, then the current housing supply will be insufficient and prices will rise until the demand (the number of people willing and able to buy) roughly equals supply.Rental rates are closely tied to property prices.

We sold a $330k rental property with almost no base so we need to do an 1031 exchange of roughly $300k to offset capital gain.