“Ricardo, I like the way you’re thinking—turning a 2-unit property into a 4-unit is exactly how you create value and scale quickly.

For more info on Cleveland you'll want to read The Ultimate Guide to Grading Cleveland Neighborhoods.

Keep expanding, receive a larger line of credit (never come out of your own pocket), and scale to funding bigger deals where you can get your money+, and also equity in properties. 

Here are a few things that I like about the neighborhoods in Indy compared to other states: high rent-to-home-value ratio, consistent and gradual city development, relatively low property tax and insurance cost, affordable renovation service cost.From my experience, it's possible to find deals that meet 1% rule if you invest in *turn-key* duplex or SFH here, but they are harder to find, and could potentially slow down you from scaling up.

Same thing happened where I am in areas where there were fires that destroyed towns or in areas where hail storms are more frequent.As for blame, there is no point blaming anyone, just learn from what happened and try to prevent it again (not fires because they will happen, but things like running out of water) or reduce the damage if it does happen again at that scale. 

Rehabs is how i initially scaled.  

You divide that $20k by .075 and you get a boost of $260k to the valuation.Allowing you to take the property back to the bank, get a new loan with $208k of additional debt on the property, pay yourself back that investment and now you have enough cash to buy a $1M deal and use that strategy over and over while scaling exponentially.

Many fail when they RUSH to get ONE property… and often with only ONE it becomes a curse and not a blessing - until you scale.

If you end up in Cleveland you'll want to read The Ultimate Guide to Grading Cleveland Neighborhoods to give yourself an in depth idea of the market.

Multifamily projects often yield higher per-square-foot returns due to economies of scale and consistent demand for rental units in urban areas.