What are the permit fees, impact fees etc.You definitely do not want to use hard money for a project like this the interest cost will eat your profits very quickly.

Ahhh, @Leslie Awasom which came first, the chicken or the egg? 

Do that, and owning rental properties is a scalable  and profitable business, let it get personal and it can eat you alive.  

So unless he's going to eat this product, we wouldn't rent to him/her.

You are trying to have your cake and eat it too.Brandon wasnt finding 12% cash on cash in tempe.   85281 is a top 5 fastest rent appreciation zip code in the country.he was finding 12% CoC in podunk washington.That said, you can find deals in some of these suburbs that need huge amount of repairs/rehab, or there are some deals foreclosures.Or you can invest in the ghetto's of PHX. and get 12% CoC possibly.Or you can invest out of the state which I've been doing the last couple years.

I eat a lot of risk in tech -- and would like to diversify my net worth with less risk but strong growth. 

thank you,steven StevenYes, HOA fees and unexpected special assessments will eat your profits, but the biggest downside of owning a condo with HOA probably is he lack of control (due to the HOA committee).

And sometimes I forget the way to eat an elephant is one tiny bite at a time.

The construction loan is eating up my profit.

After it’s fixed up expenses shouldn’t be eating up your cash flows as heavily.