there just aren’t many sold properties in the neighborhood in the last 3 months and even out to 6 months is limited.

It may even be higher than 5% depending on the area. 

Purchase price: $640,000 Cash invested: $220,000 Purchase price $640,000Got it at this price because there is a non-paying tenant in unit 2 (rent value $3,500), we're in court Rehab $60,000All in cash (rehab plus down payment) $217,500Rehab included ground level basement and 2 parking spot drivewayMonthly cash flow $1,500 ARV $950,000Equity $470,000Refi cash out (August 2024) $150,000 (used to buy new rental)New monthly cash flow breaking even (non-paying tenant still in unit 2)New equity about $200,000

Honestly 350 days a year I don’t even think about it. 12 days a year I wonder if everyone paid and if not will they pay, for about 30 minutes.

Additionally, trying to spot paint even a white wall with white paint doesn't work, let alone other colors.

Partial or full doesn't matter (except see note below re: coming even on delinquent rent).The statute regarding notice for evictions states: "No judgment of possession shall be entered for . . . except in the nonpayment unless the landlord has made written demand and given written notice for delivery of possession of the premises.”

I made a great connection with that property owner and proved the concept since he was unfamiliar and hadn't even heard of rental arbitrage.

I did have experience operating LTR's to bring to the table, but even if you don't, it's not that much more complex.

The reality is that you will not find that in the seller finance space, and even if you do, there will be virtually no discount. 

So, there is even more risk.The things that you can do, include being properly capitalized, not be greedy, (in whichever way that may be defined in the county you are buying), know solicitation laws, know Dodd-Frank, the Consumer Protection Act, the S.A.F.E.