You want enough so that a potential law suit would go away if the insurance paid out.Best thing is to highly maintain your property and treat guests with respect so that no one would ever want to sue you.

They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).

@Sean Overcrest Transferring the property to an LLC may help avoid property tax reassessment under California’s Proposition 13, but it comes with risks.

If so, you should also look into the insurance requirements during construction (both builder risk as well as the GC's policy, but particularly the GC policy).

.: Two things to consider: factoring in risk and opportunity cost. 

But to the point of this thread, no one can offer a "this is a good return" without knowing the structure and the potential risks involved.I think Jaycee hits on the general returns available in the market. 

You can still find solid investment properties at reasonable prices, which can lead to strong cash flow.Diverse neighborhoods: Cleveland has a wide variety of neighborhoods, each with its own character and investment potential.

Your situation presents a classic trade-off between long-term appreciation potential and short-term debt reduction.

@Jordan BrownWith $50,000 saved, you have several solid investment options depending on your goals and risk tolerance.

Everything looks great in both towns but then the insurance and all the climate risks make me wonder if I should back out.