Ryan,I tend to get some some referrals every month from Canada that ask about DSCR they are usually looking to buy Vegas and Arizona. 

When it comes to 2-4 units not all markets are created equal. the northeast and midwest tend to have a lot more market for these properties then do newer areas of the south and west. 

Who do you tend to do high-quality deals with?

Of course property taxes tend to be more expensive than interest payments where I live.The FED is supposed to keep employment low and inflation around 2%.

Just a short list its like 50 ways to leave your lover there are 50 gothcas in sub to. 1. the easiest for everyone to understand the sub to violated the Alienation clause in the mortgage or deed of trust and holder of the mortgage DT / Note decides to call the note due and payable and starts a foreclosure. 2. foreclosure started and the person who bought sub to has no means to pay it off or refinance it and the original sellers credit get trashed and if its a deficiency judgement state even on an owner occ like Texas lender sues original seller for the deficiency. 3. this kind of investing or acquiring assets tends to attract those with limited resources so they have no ability to fix things they decide to scale up and then it goes out of control and sellers are really harmed4. deal goes south and original seller sues or files complaint with AG. 5.

:)I definitely hear you on the risk - I aim to buy-and-hold the properties and place Section 8 tenants, so the deals tend to be as safe as possible, but I understand your and Mitch's points about deals possibly losing money.Where I'm getting lost is on how to structure being paid when I borrow from private lenders.

Assignment fees tend to be higher maybe $10k and only occur if closed.In that case, you'll get cut out unless you have an investor you really, really trust.

Investors tend to buy where the numbers work best and home buyers buy where they want to live.For buyers in Austin the markets on the edge of the metro are more affordable and growing very rapidly for instance.

Since real estate tends to have a lower correlation with the stock market, it can serve as a stabilizing asset during economic downturns.

Does MSO tend to stay same location like DSO groups?