We have very similar sounding stories Jeremiah and I went through the same question.

The returns I'll pull in from the out of state triplex will be 4x what I can get in DC on a percentage basis.Moral of the story, don't be afraid to look out of state.

Purchased a single family 2.5 story in a desireable historical district close to a downtown waterfront community.  

Detroit is definitely making a come back, I believe that 100% but it is with blood sweat and tears and there are going to be some Huge success stories and probably a lot of failures.  

@mar As a landlord I have been burned more times and have more stories I can't talk about in polite conversation because I get so riled up. 

Your broker scares you by telling you horror stories of how cut throat they are.

My Dad is my Attorney and all I hear is horror stories about bad renters so I have tended to stay away from the rental game.  

@Steve VaughanSeller is over 30 k behind ---Long story short (an old women) made a mistake that I don't want to get into (she got scammed) and now faces foreclosure .

Here's the quick, down and dirty back story: I bought my primary residence (first property) in August 2014.

As for private lenders, that's a different story since they are individual people who may be happy with the arrangement you propose as long as their investment is secured and they receive the return you promised.I would think that the rates you would pay a private lender would make the investment a loss since you're going to be paying a higher rate.