There are lots of folks running around the country telling others how easy this real estate business is - they fail to give details of the mistakes that can be made and negative issues to contend with.Capturing equity is a tricky business - it is NOT EASY - there are so many moving parts.

I contend that if you are planning to hold for under 5 years, you are in fact a long term flipper, not a buy&hold investor.- Leveraged appreciation (the way Nate considers it) is not just paper profit, is like virtual paper profit.

Hello,I am an appraiser and real estate broker in the Madison, WI area who is looking to expand my real estate portfolio into cities with stronger cash flow opportunities and Memphis seems to be a strong contender.

Additionally, you'll be doing those upgrades anyway if you have turn over to contend with.  

And if you pull on the equity string of an existing home, it drags the passive income down because you'll have a higher mortgage to contend with.Definitely areas of struggle I'm working though

There are pros and cons to either.I know things are a little different up here, but when lenders (TD is one with whom we deal) tell us we are responsible for the appraisal fee, we respond with "No problem, but if we pay for it, we get a copy"  - our experience has been the lender with agrees, or decided to eat the cost of the appraisal themselves.In Canada, we only see "origination" or "diligence/administration" fees in commercial lending (on residential mortgages, it's all baked into the cost of doing business), however I would contend that the cost of an appraisal is part of the cost of processing the loan and should be covered from their 1% origination fee.

One issue that they have to contend with is verifying the buyer has at their own 25% down payment in to the transaction and an investment property typically limits the seller contribution to 2%.

I have a property manager that deals with section 8, so I haven't had to contend with frustrations around direct interactions.Darrell

My Realtor always reviews the buyers with me so we pick a strong contender... especially if multiple offers are offered. 

Hello,I am an appraiser and real estate broker in the Madison, WI area who is looking to expand my real estate portfolio into cities with stronger cash flow opportunities and Milwaukee seems to be a strong contender.