Hello BP Mates,Welcome back after the holidays, I hope they were fabulous.I'd really appreciate some stories of your experiences to illustrate your thoughts.I'm looking to invest in markets that have good cash flow fundamentals, but slower and more linear to appreciate than others because of the lower capital needed typically to buy properties.

I illustrated a conservative example of two paths of investments.  

One of the first ways which is illustrated throughout this thread is the harsh contrast between the idealistic view of real estate that we imagine (and which is marketed heavily by unscrupulous gurus) and the reality of real estate.The first hurdle to get over on the path to success is to be able to push through and to oftentimes be your own (and only) cheerleader and to be okay with it.

CapEx was just there to illustrate the "fixed cost" nature of what we deal with.  

The idea is presented to the Seller of the real property and is purposed with showing or illustrating how strong the intent is as a buyer to meet the demands of the transaction.

Just trying to illustrate a rule that I stick to.

Almost every freshman-level textbook contains a case study on rent control, using its known adverse side effects to illustrate the principles of supply and demand.

What you're sharing illustrates the need for a proven, consistent, reliable system that ensures prospective applicants follow the same process and rules across the board, shields you from claims of housing discrimination, and keeps you sane by pre-screening unqualified window shoppers from the qualified, respectful, long term tenants you ultimately are seeking yourself. 

You said it as if the 1% rule were a “go” signal.I think this property is a good illustration that the “rules” are not “go signals”.Never forget that they are ‘back of the napkin’ checks to see if a property is worth more of your time.I think you’re making the right move passing on this as is, and I wonder, how would the deal have to change for it to become profitable for you?

I think something like Scott Smith illustrated in the post above is pretty close.