A 20% cap rate means you invest in poor areas where investors will only pay $5 for a possible $1 of NOI   V=i/r  But it also means that all your hard work to get a dollar increase in NOI will only get you a $5 increase in value. 

Ryne V. I

Although investors will still insist on sponsor vetting, the financial condition of the sponsor as well as the sponsor's record is held to a much more relaxed standard vis a vi the major third party platforms.  

I have a confession @Jerry V. I

Good point @J V. I

@Roberta James @Ralphy Rosado  sub too in my mind is an advanced strategy and not at all appropriate for beginner investors who are not very well capitalized.Granted you get into the deal.. but for the seller these are HUGELY risky.. as least as it relates to the credit and potential for deficiency judgment if you cannot execute your plan.For the established well capitalized company or investor who can simply write a check to pay off the underlying debt at anytime or easily refi.. that's when this is an appropriate scheme.Touting this to those just starting in the business creates all sorts of havoc for many folks.I have seen people try this as a beginner strategy in get into a lot of hot water legally.and Seller get totally fubared vis a vi their credit if the person they deeded the property over to cant execute and goes dark.. or worse does a sandwhich lease option that gets recorded and that lessor goes dark.. its a cluster of the first order.

@Dan V., I recommend getting two more estimates. 

To paraphrase Joe V, I think you should be less concerned about collecting doors and more concerned about collecting money. 

Hello @Andy V., I have a list of GC and handymen, which I use from time to time.

Here’s the link (fyi - this article was published in Aug 2019 - so pretty recent): https://themichaelblank.com/vi...On another note, Michael shares an interesting statement I noticed to be true in at least one market I looked at: the often hard to justify cost of building B and C class multi family properties.