And having been CEO for the last 6 years, and with the company for 10, I have observed some nuance:- The guy with two units in Mississippi sometimes has no debt and has spent 1,000 hours learning, knowing their stuff.

And their roof loss settlement is "variable by roof age", not actual replacement cost, nor depreciation adjusted (most insurances will hold the depreciation portion of a claim till the repair is done and only then release the funds).Make sure you compare apples to apples when shopping around, pay attention to what they give you for "free", what deductibles apply and when exactly you can get coverage from the insurance and to what limits.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Rates have unfortunately been horrible lately with big spikes just in the last couple of weeks so even quotes from the beginning of the month are probably out of date at this point.

I am also nervous about my move to the DC area wont work out and I will have this house as an option in case I want to return to the bay area and will never be able purchase a similar home if I sell it.I honestly think the answer to the 1st question should in large part be dictated by the last question, how likely are you to move back to the Bay Area? 

Please keep in mind, you may qualify for the 750 hour test for real estate professionals, but need to materially participate in the rental activities as well for it to be considered active (and take the active losses). 

and lastly, it would be a bad idea for a mortgage company to call a performing note, but if we get to the scenario in the next year or two where mortgage rates are at 7% or 8%, it might make a lot of sense to call a note that was written out at 3%this is a great explanation though!

., via syndication) could achieve significant losses in the year of acquisition. 

Lower risk, lower reward.Flipping by yourself or with a partner is more risk, more potential reward(also more potential LOSS).