Whenever you are using leverage, you need to have ample slack in the system and sufficient cash reserves (or access to cheap & instant cash) to cover vacancies, capital expenses, unplanned maintenance, and other issues to avoid missing your note payments. 

David, I'm glad for your "...roughly $648,000 to $1,200,000 in instant equity.. type investments with your guy.

Unfortunately breaking into an unoccupied dwelling is typically the lowest degree of burglary.

He kept avoiding our requests and said we should claim it in our 2023 taxes instead… The last straw for us was when he tried to charge us another $7.5k to file our taxes which obviously ended our relationship instantly.

Whereas an HOA can call a vote at any time and shut you down instantly with zero input or due process. 

Tenants understand that the owner or PM has the right to periodically inspect the dwelling and if it is found that the tenant is destroying the home the Section 8 office can be contacted and the benefits will be placed at risk along with possible eviction.  

Instant cash flow investing as we have seen it in the 2010 years has been a historic anomalie.

There was no way I was going to buy 100 of these and take on 20 million of other peoples debt without clear cut back up plan that included instant paying of their mortgage while i worked it out..

Now a landlord (and architect), I wouldn't build out the space without the second stair since it really is a safety issue/liability (especially in case of a fire) if anything were to happen.Full excerpt of building code below:According to the Chicago building code on egress requirements, the third story above grade plane within a dwelling unit [which in this case is the duplex-up unit], all the following conditions must be met:1.) the building is equipped throughout with an automatic sprinkler system2.) the floor area of the story does not exceed 1600 sq ft3.) the dwelling unit has an exit that discharges directly to the exterior at the level of exit discharge.Your third story attic space is unlikely to exceed 1600 sq ft, but you'll probably find the sprinkler system to be cost-prohibitive.

If you put $250k into stocks and when the stocks appreciate 50%, your equity increases by 50% minus taxes.1031 exchange: You can sell one income property, buy a replacement income property, and defer capital gains taxes.In many cases, depreciation alone will reduce or eliminate taxes on your rental income.Real Estate DisadvantagesLiquidity: There is no way to convert real estate to cash instantly like you can with stocks.Higher entry price point: You can buy stocks for a$5 or less.