Starting with house hacking is a smart move, especially in a higher-cost area.

I just bought a SF rental from a wholesaler in Detroit (just north of Bagley and south of Ferndale) and have another on market deal under contract in the Morningside area.

All in all it depends on the mindset of the investor and dozens of other things smart people consider.

My second house was under contract before it was even listed, but the combination of my GC disappearing and having to restart the permitting process for the carport in March right at the start of Corona lock downs dragged that out and eventually feel out of contract.

The grout between the tiles allows a run off of water and a gripping surface for your feet.3. if you’re smart, use durock on the walls too, right up to the ceiling.

There is also a provision in the promissory note that states in the event of default, we must deliver the property back in the same or better condition from the time of purchase. 2: We will deed the property back to the seller & execute a contract for deed.

Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

Fixing up a property and turning it into student housing is a smart move—steady demand and solid rental income.Great job!

With that said, a lot of people take the cost-benefit, but no one can argue it's a smart choice, just a frugal one.

This also leads owners to ASSUME simpler is better when it comes to management contracts.