I have been with a property management company for 2-3 years in Arizona and the property is being run continuously at a loss.

With a 40% expense ratio, the DSCR is approximately 1.21Hindsight Critique•Continue to build relationships to increase deal flow•Property manager (Mercer Hughes) is critical to completing renovations and quick tenant placement•Continue to build relationships with private lenders and personal investors•Have cash available to make quick competitive offers

Quote from @Stuart Udis: As I am sure is the case with many investors, my residential and commercial leases continue to evolve.

I'd recommend the following:1) Continue to stay at home to save up more2) Buy the crappiest home in a good neighborhood, with financial help (parents?)

Reinvesting $700K defers most taxes, preserves equity, and allows continued depreciation benefits.

@Constance Kang well you discovered how many of the most expensive REI instructors work in this industry.

I have been investing in trust deeds for over a decade and will continue to do so because I believe this is one of the best ways to invest your retirement funds.

I'd expect prices to continue to appreciate, so the longer you delay, the more expensive things may be. 

I've had one recent multifamily deal in Florida exit with a 32% IRR and one hotel deal in Atlanta refinance and return 110% of the original invested capital through dividends and the refinance and the hotel continues to make regular 16% distributions.  

Therefore, if you look at history, real estate has continuously performed in an upwards fashion while, like any other investment, has experienced short lived corrections from time to time.