Since I’ve increased my deal flow to a significant degree, I find that this technique eliminates the wasted time and effort of dealing with people who aren’t highly motivated to close a transaction.  

For my own portfolio diversification I want investments on the risk spectrum, some high risk, some medium risk, many low risk.  

- Are there certain areas you would stay away from and why (eg, high crime, bad schools, poor quality builds, etc)?

I know to look for areas that are landlord friendly, have population/job growth, limited seasonal/environmental issues, high rent/price ratio, and areas within my budget (under $200Kish).

A Stanford study revealed that over 75% of the ADUs built in San Jose between 2016 and 2020 did not have a permit and are therefore illegal housing units.The lengthy permitting process, high construction costs, and shortage of tradespeople are some of the factors motivating property owners and contractors to take on the risk of building, renting to tenants, and/or housing family & friends in an illegal unit.

@Catherine Ding  The additional costs of a smoker are the purchase of the ozone generator, and the additional paint prep with wall washing, and a high quality primer coat.

Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy).

Account ClosedIts a good point about the yardsAlot of pro framers I know who do high volume use 84 Lumber and smaller regional type yards not the Menards etc.   

I don't really like that ROI as high yield savings accounts almost pay 5% these days, surely you could do better than 6.75%  

In this cas you own but it's fraud, orange jumpsuit not so flattering.For a "win win" in a distressed property the seller has to get a big sales price or high interest rate for taking the risk.