We manage several hundred rental properties throughout the San Diego market and I found your post very interesting. 

Key Deal Points:Loan Amount: $88,000Lien Position: 1st position Purchase Price: $120,000Appraised Value: $250,000Interest Rate/Return: 11% annual returnTerm: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)LTV ratio: 35.2%---Licensed Lending company for contractsRMLO package completed on buyersServicing company for payment

I agree that 1-4 unit properties are a different ballgame, but within my portfolio, I have a 4-unit property insured for $715K—the same amount as one of my single-family rentals.

Maintenance/cap ex, insurance, if a rental PM, bookkeeping, misc.The fact you have a loan means 1) leverage 2) equity pay down.In addition, there are tax benefits.So I will do some rough underwriting as an OO non-rental at 95% LTV (because FHA has some undesired consequences that make the 1.5% difference in LTV worth avoiding the FHA).equity paydown: 20% (using OP interest rate at 95% LTV and not counting closing costs). 

Quote from @Matthew Espana: Hi, I am interested in connecting with anyone who has midterm rentals in the Bakersfield area.

The rental income from the first home will pay for the mortgage/monthly costs.  

Quote from @Sean Regan: Getting ready to list my first rental property after an extensive reno. 

BIG DIFFERENCE between a a few cash flowing rentals vs retiring off of rental income.

Happy to share the pros and cons of the various communities in both counties.Orange County (Orlando) places severe restrictions on most vacation rentals, with a few exceptions - so you’ll want to be careful there.

Purchase price: $175,000 Cash invested: $35,000Buyout property that needed significant upgrades to bring to rental market in 2022.