On the other hand, if you find a supply vs demand imbalance in a cheaper market, prices and rents can rise unhindered. 

I am actually an advocate for owning investment real estate in an LLC, but in a far simpler fashion than most believe is necessary. 

I think in these circumstances such items will be quite suitable to new fashion.

Simple economics, supply and demand. 

I recently had an estimate of $20,000 to create a basement egress window and I put my foot down and told my GC that I was going to rent the excavator, and we found much cheaper supplies, and were doing the project ourselves.

I know that I can write my travel, supplies, and food expenses off of my taxes while on that trip.

What about repairs, supplies, and other expenses?

In others experience is this return worth the risk given Multi-family environment ie supply, interest rates, project specific risks, illiquidity risk, and more specifically the Preferred Equity subordinated tranche risk (this sounds like just a Mezzanine loan without recourse).

@James Hamling thoughts on supply vs. demand and rate lock-in? 

I am curious about any potential barriers to look out for- timing, access/cost supplies, labor force?