While real estate values do rise over time, if you can't cover your bills during the downturns to get you into better times to sell, you are likely to lose money.  

In the meantime, the funds have been reducing or suspending distributions to pay for value-add, cover increased costs, and to prepare for any required refinancing.So it will be a balancing act of dealing with the increased costs, managing refinancing, continuing to add value while waiting for valuations to rise significantly (partly from value-add, partly from lowered interest rates) before exiting.Disclaimer -- not advice, just some perspective on what's happening.  

Thanks they didnt say anything about STR it would be awfulI was wondering how they make money now i knowI dont think the $10K would even cover damage!

Because it is always changing, but not always warming.....gotta cover your bases y'know.... 

Living in one side and renting out the other will help cover your mortgage, and after a year, you can move out and keep both units as rentals.

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

Personally, I bought a 3 bed single family home soon after starting my job and had two friends from college rent which covered my mortgage plus a little extra.

Real numbers- purchase 907k,rehab , closing costs, soft costs, 840k, all in 1.747 mil, basis for each unit should be roughly 291kappraisal of each unit minimum 400k , so 2.4 mil if for all 6.I might refi only 4 out of 6, that will cover initial loan amount.

Also, take as many pictures as possible before the tenant moves in, again this protects you in case of damage caused by tenant. 

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.