I live in a costly area, and this is the main stoppage point of getting me to just jump in.

Ultimately, I do think S8 requires scale and lots of efficiencies but has its benefits. 

@Dave Meyer had an interesting episode on the BiggerPockets Real Estate Podcast about 3 main resources when it comes to investments: cash, time, and experience. 

Another benefit: three friends renting together typically need their own policies.

The operator may trade off the longer term benefits to keep a high quality tenant in place.

Your main concern should be whether these bedrooms and bathrooms on the lower level are legal and have the proper egress require for fire code and livability.

I’ve included a photo for reference of the kitchen which is the main attraction of the Mass home.Now I am looking to pursue REI long-term and am looking for tips on how those more experienced in the field have operationalized and scaled the property selection process.Our thinking for this first official investment is to either acquire a duplex/triplex and add our touch or acquire a single family where an ADU can be added.

Holding the property should pay down the loan and give us tax benefits. 

You might find that installing a mini-split system, properly insulating, and ensuring the finishes match the main home’s quality will make a difference in how the appraiser views it.

The only way to make money in bad neighborhood through LTR is either getting the government benefit or running it as a slumlord.