Although low risk this is a slow way of creating wealth and it is not taking advantage of the low interest rates or all the tax advantages that the US has with owning real estate 2.

What are your least favorite--a rule of thumb you've picked-up here or elsewhere that's either inadequate or flat-out wrong?  

This will not work because the lender will eventually determine the scope of work is inadequate for the loan situation.Do you have hard money loan tips or questions? 

You can live free or almost free because the other units will pay most or all of the mortgage payment.What a deal! 

At least that's how I taught economics in college.Your cash on cash can exceed your total investment return, no real money in and the COC is sky high, but, did you really make money or all that you could have?

This is all based on my own research and general feel though so I could be wrong on some or all of these notions so please feel free to give your opinions.

ChrisAre you after cash flow, equity, stability, or all three and what is the priority?

But, most people find some or all these parts difficult:- Finding deals- Finding money- Evaluating deals- Negotiating deals- Due diligence on deals- Creating a Scope of Work- Creating a budget- Creating a schedule- Finding contractors- Negotiating contracts with contractors- Managing the rehab- Preparing the property for sale- Marketing the property- Negotiating a sale- Getting to the closing tableWhichever of those you aren't good at will be the hardest parts...

Now, this isn't a house-hack; don't let you property choose you.Get out by using any or all of these:FHA means owner occupantLook for anything in the contract such as "buyer accepts property in condition as of inspection" Look for sellers disclosures regarding "one" rented unit, Check the remarks section of the Mls -anything referring to one vacant unit such as "live free" or "tenant pays your   mortgage" lines.Isn't there an attorney approval period? 

When you make high risk investments with the hope of making 10% you are also accepting the risk that you may make a lower investment and may lose some or all of the money you've invested.