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.

Rehabs is how i initially scaled.  

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.

Rates that are too low relative to the rest of the market are a red flag.Agreed granted many of the HML have a sliding rate scale based on  ARV  and experience  and maybe a little fico in there. lowest I have personally seen was 7% and 2 points.. and of course junk fees.  

You are totally right for not answering my simple questions and then calling me names like a grade school student.

They are houses that nobody wants, which is why you can buy them for the price of a used car.And you are correct - real estate does not scale quickly when you are starting out.

I would both buy a property to get your feet wet and at the same time make a plan to scale.  

Using automation can certainly help at scale for easy things, but if you have one STR and can't be bothered to respond promptly to your guest, I can guarantee this business will not go well for you.

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