Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

In southern Florida I fund and profit / loss is 50/50.

Quote from @Kody Smith: I am New-ish to Bigger Pockets, and would love to connect with the community here.The idea: move from single family homes into commercial real estate... specifically multi family.The Goal: generate $20k/mo in cash flowI'm currently in silicon valley (san jose)... would love to find something profitable here, but it looks like there are better opportunities elsewhere.I am open to investing in markets across the US.

The Justice Department’s acting assistant attorney general, Doha Mekki, put it bluntly: this case is about ending the practice of “putting profits over people.”

Feel free to inquire about their staff qualifications if it's a larger organization.2.

Until i ran into it all, faced it, worked through it and got good at turning problems into profits. 

So, in reality every month your moving close and closer to sucking out months/years of profits via items aging out, cap-x coming to bear. 

Anywhere that one can buy properties for under $100k is very unlikely to have the rent increases that you will need over time to create positive cashflow, or the price appreciation that you will need to make this a profitable endeavor.

And would this be considered "capital gains" since it's re-sold under 1-year therefore having to pay a large % of tax on the profit?

It is about creating a balance between being open to new tenants and protecting your property interests diligently.By fostering a more secure leasing process, you can ensure that your properties remain profitable and that your relationships with genuine tenants are based on trust and reliability.