This has been the most successful model I have seen in real estate.This goes 100% against every guru and investor the past 5 years of get rich quick of buy, rehab, rent and refinance with little money - that video game is out of order so the gurus need to reinvest themselves and they are trying with seller financing and zero down.

@Sakib KhanRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

But it can really help offset costs and pretty good return on investment at that value. 200k in philly puts you in Class C real estate at best, and you likely have to update it somehow. 

Hey @Chi Lo - I actually have a video on my YouTube page about this (lookup ClosedByMo on YouTube).Regarding walls being damp and waterproofed, it means there needs to be waterproofing on the basement retainer walls (this is something you can do post-construction and the contractors would need to dig around the house exposing the basement/foundation to apply the waterproofing). 

Hey @Eric Andersen, so there are a lot of regs in the DFW area.https://www.fortworthtexas.gov/short-term-rentalsRentals are not allowed in residential districts: A-#, AR, B, R1, R2, CR, C, D, UR.Dallas recently banned STRs in single family homes but there was an injunction that blocked it.

@Garry LawrenceDevin Moreno has a bunch of videos on rent-by-the-room strategy in Baltimore on hisYoutube channel.

These are factored into the mix.In the future, I will suggest that you request a move-out report along with pictures and/or video on what needs to be taken care of. 

That’s 3 months of mortgage out of pocket and can make Chas flow negative. im also curious if people have experience doing section 8 in b neighborhoods or just c and d 

But make that police report with the video evidence as the insurance company is going to want a copy.

Ok...I was searching here b/c I have the same question.