Just wanted to mention that the cash out refinance funds are not tax free forever.

They even added a small “welcome basket” with loccal treats, and guests loved the personal touch.. it became one of their most mentioned features in reviews!

As others mentioned can you afford the negative cash flow?

As Peter and Jonathan mentioned relying on similar comps and/or local agent knowledge is the key here.

They both have extensive experience in Duluth.Thanks for the mention @Tim Swierczek.

Like @Charles LeMaireand @Justin Kane mentioned Joe Fairless and @Theo Hicks have a great book that goes over every step of the process on how to become an apartment syndicator.Are you looking for a more active or passive approach?

This is one of the things that @Matthew Irish-Jones mentioned above - be careful about putting #3 on his list above #1 and #2.

Quote from @Shayan Sameer: Quote from @Zachary Deal: As several folks have mentioned leveraging equity in current property you owned is a great tool but still comes with the some of risks as you had before using hard money debt as there is never a guarantee your new project will be a success (there will always be risks with real estate investing).Leveraging your investment property would probably be the first step I would take. 

Not to mention it will create generational wealth for your family if you keep scaling up with leverage over a 10 year period or so.

As mentioned before too, newer construction tends to sell at a premium too.