I'm not saying it always turns out bad, but there are numerous issues that can arise that are not worth the arrangement.

Ive been to HPD Section 8 office numerous times in person telling them all the incidents and all they seem to do is defer me to housing court. 

@Taylor Chiu  I currently work in the healthcare field and did home health for a while and saw patients in numerous ALF's in SFR here in california. 

If you're applying for a Conventional/FHA/VA/ or USDA loan, then they will do a "global cash flow" where they take into account your PITI (Principal + Interest + Taxes + Insurance (hazard and flood) on all properties (second mortgages included), HOA payments, car payments, student loan payments, credit card payments, and installment loan payments in the numerator and your gross income in the denominator.

I’m currently bidding my time and rebuilding the war chest while we rehab the most recent 5 units and get them rented.

@Brad Banks Some models do have bidding wars.

You seem to have a lot of competition in your field, but you keep plugging along.I've bought numerous homes on the private market, and I wouldn't have it any other way.

I keep hearing how people are cost segregating, but I have pushed my accountant numerous times on this and he just saying that if we did the cost seg, all of that depreciation would just go into a reserve that would then be applied when we sell the home. 

This indicates a shift from a seller's paradise to a more balanced market.Median Sales Price Holds Steady: The median sold price for residential homes sits at $469,998, reflecting a modest 1.9% year-over-year increase.Fewer Bidding Wars: Though sellers are still receiving close to list price (95.6%), the intense bidding wars of the past seem to be fading.

IF they can win one in a bidding war, plus cover the appraisal gap on top of all of their other expenses.