If you are in low to mid six figures say $250k a year -   you would need around $2.5  - $3M in cash to make the similar income consistently and without significant risk.Thank you, Chris, for your thoughtful insights—it’s an excellent point to consider the financial and tax implications of leveraging equity.

I knew I was adequately insured and had zero risk of financial consequences.  

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Quote from @Shawn Questa: Hi all,I am curious what some of the Pros would do to Help a Seller in this situation while making a Deal happen.I found a 200+ day old MLS Listing where the Agent said the Seller is in Financial Ruin, hasn't Paid the Mortgage in a year, owes about 180k on an approx. 210k House and multiple Buyers have backed out.I don't know how someone could not Pay their Note in a year and not at least be in Pre-foreclosure. 

You are bleeding money now, but each year it might actually get worse depending on the financials. 

Since 2019, this immersive conference has been the go-to event for investors looking to scale their portfolios and achieve financial freedom.Why Attend BPCON2025BPCON is not your average real estate investing conference.

If you do end up segregating, keep good records to prevent having to recapture the depreciation of the reclassified assets.

Narrow your top cities, build a local team, and refine your financial analysis to position yourself for success.Good luck!

@Nick Henry this also comes down to how much time you have available and how much effort you are able to put into purchasing a home or building and doing renovations and then finding quality residents to live and take care of your asset.

It's a primarily a utility asset, and secondarily a store of value against currency.