I'm doing this for the residual income versus continuing wholesales for the moment.

Wondering what drove people to pick one versus the other with their own investments.

Versus in the commercial residential space of MSP I know they are happy with cap rates from 8-12%. 

Our leases forbid subletting and even stipulate what qualifies as a house guest versus tenant.  

I would also require monthly reporting of sales in the lease as well as yearly to assess how you are doing month to month with total sales versus your annual lease amount you pay.

Jumping into self-managed rentals with no experience and/or limited capital is very much a sink-or-swim wager, but that wager becomes a lot less risky a few years down the line with a little more financial leeway and a lot more experience behind you.If you have any questions about the Birmingham market or what we do at Spartan, or just TK in general, I am more than happy to chat via PM.All the best,Clayton

It really helps to have actual experience building a house so you know the costs versus "pro forma".  

What's your budget on the renovation and how long do you plan to live there versus rent it out?

I still believe that relative to national averages, and certainly places like California (average home price $448,000 versus $146,100 in Texas), we have PLENTY of room for appreciation- especially in the north Dallas area.

This versus getting another 5 year balloon, 25 years amt at 5% and having to pay the refi costs.