When they sell an expensive property, they have money left over to bid up properties in Arizona and live in much larger and nicer houses in better neighborhoods.Anybody who already has properties in Arizona has done quite nicely.

Due to the upkeep and expenses of the land I would probably only go after it if you think it's a sure bet to sky rocket or it will present a development opportunity down the road.

But, I'm curious if there's a good estimate (perhaps using historical averages) across the US? 

-Most leasees never exercise so 3 to 5 years from now... you keep the option fee, and had the benefit of rent that was probably above the market rate for your area.The drawback is that you don't get the ~$250k(after selling expenses) to play with. 

If it was my deal I would look at the big capital expenses (roof, foundation, AC etc) and determine if those will be a factor in the older property.

Are you accounting all this in your expenses? 

By renting out the additional units, investors can cover their mortgage and expenses while generating passive income.2.

In this post I'll share some insights based on my findings and some data to showcase why this market is a great opportunity.About This Market: Parma, Ohio boasts a stable population driven by affordable housing prices relative to national averages.

This criteria is for 1-4 and 5-8 unit programs.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

I'm planning on acquiring a HELOC on my primary residence to help me with the down payment/expenses of my first investment property.