Even if adult kids in the basement is a norm, adult kids with families in the basement is still not in my view.As the generation gets employed, forms families, and is able to save the downpayment, I think they will buy in many markets, they are just delayed some in my view by economic and other factors...

depends on if financing is involved or not...typically closing costs can be under $1000k if all cash deal (whether buying or selling)This doesnt factor in closing costs for realtor fees though

I'd be really interested to see how these investments last once you factor in a longer time horizon, allowing for theft and bad tenets to do damage...A house that cost only $50,000 that brings in $300/m sounds great, but...

As rates rise, cap rates and property values will tend to fall but of course there are lots of other factors that can impact and override those.  

@Jon JosephI can not comment on HOW to expand but make sure when you do expand you factor in all the numbers.

However, there's no guarantee how long that would be (or at least, I don't have enough knowledge to know--if you know, say, with good evidence, that 2 years from now the prices will drop significantly then waiting is prudent).If there is no real evidence of large, detrimental economic factors going on (war, people moving out of the Bay in masses, an unusual amount of new construction making the supply on houses extraordinarily large for a prolonged amount of time), then there is no reason to assume that the seller's market will swing back to a buyer's market any time soon.The fact remains that the population in the Bay is growing year after year, tech companies are still expanding (to such a point where they are closing down Gold's Gyms, grrr, but that's another story), and this is still a highly desirable place to live.  

My reasoning is pretty easy to follow- 1) Many of the rest of the world's central banks are lowering rates in fact some are going negative.  2) Inflation is currently a non-factor and is expected to be until 2018 given the continuing rout in commodity prices I don't see that turning around any time soon. 3) Labor participation rates are at long term lows.  

Probably best not to be specific about unrelated factors.

This could fall under a 'no smoking' clause if you have one in the lease, but if they have a card, it may not be enforceable as it is a 'medical treatment'.

Any advice is greatly appreciated.David,Here's what I do for my multi-family buyers:Yes it is hard to estimate for maintenance because of a lot of variablesBut I know its expense is less for more units, for things like 16+ unit buildings, onsite maintenance room for storage materials, onsite employees use less hours to do work ordersSome entities even volunteer their residents to pick up grounds, hence minimizing your maintenance costsIf hdsupply.com accepts your account they specialize in multi-family buildings and you don't have to use man power for delivery or pickups And yes, you can do analysis paralysis but it might help you the bank's formula DCRThe 1031 buyers look at expenses differently Yes there's a number per door, e.g. if the units have been neglected you will spend at least one month's rent in turn ready unit expense    An organized well lubricated team should turn ready units in 2-3 daysPay close attention to the human factor, i.e. low self-esteem employees who will take longer to turn ready units or do work orders with poorly workmanship, theft, etc In capital expenses, concentrate in a few and more expensive to start with, AC, plumbing, electrical