Over the years a completely remolded the house and mobile home and made improvements to the lots and increased the rents to $2,350 per month.

Its also a great way to increase values in a market since newer homes sales offer higher sale prices.

Meanwhile, my current carrier increased their estimated rebuild cost from ~$1.6M to ~$2.6M to justify their premium hike.Most other quotes I received estimated replacement costs between $1.3M and $1.7M, but finding a carrier willing to underwrite this policy has been challenging.

This hidden cost significantly increased my loan’s overall expense, and I only realized it after reviewing the final terms.

I picked up the BRRRR method book and feeling confident in setting it all up (we did a similar process for our Airbnbs).  

It's a gradual, steady increase over a long period of time.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

Duplexes are a little easier than 3-4 units with FHA since they don't have to meet self-sufficiency requirements.

Live in an area for 2-3 years, self-manage the property, and then relocate again, passing the baton to a property manager.I’d love to hear advice on any of these markets for making this approach a success!

Keep in mind this is a self-directed account and most are not.