First, I’m not really seeing enough cushion in certain popular areas for investors to realistically hit a 30% profit margin.

Pete, try looking at cities within an hour of those areas.Lately, I’ve actually been seeing more properties hit the 1% rule, which hasn’t happened in a while.

@Patrik KusekYou hit the nail on the head...

Also the hit rate per property is really low.

In this area, market values hit around $4.95 million, giving you a solid 131% ROI.

The house is currently under management so I’d think they’d take care of getting top market rent but I think we all know that management companies can be hit or miss.

@Tori Rhodes faster ways to scale:Buy a portfolio from another investor- Get seller financing from a savvy one that doesn't want capital gains hit!

Others hit it on the head.

However what happens when the tenant vacates and now the unit has to be turned over/takes a few months to find a new tenant and during that same period of time the sewer line goes and you get hit with that $15,000 cap ex expense in addition to the vacancy and turn over costs.

I'll hit the phones!