And remember, since you are using leverage your return will be higher compared if you were using all cash purchase.

I did mobiles, looked into self-storage, vacant commercial property and re-purposing old white elephants (old warehouses) or motels or toys r us's or any number of failed brick and mortar structures with motivated sellers. 

So if I follow, you would be taxed based on the GAIN of the sale of the property compared the the amount that you depreciated the property?

@Brian Dickerson, federal law prevents lenders from exercising the due on sale clause if you transfer the property into a trust for estate purposes, but you must remain as the beneficiary, which means that you also still have all of the liability.

A 2,000 sq.ft. 3bed/2bath home may be able to house an extra person or two when compared to a 1,200 sq.ft. 3bed/2bath.

To compare with all our inherited tenants, those are very "unique" ones.

How does it compare to direct mail and cold calling?

I’m from Los Angeles and comparing prices it seems very expensive here.

@Christopher Dorsey At first glance this is waaaay too complicated, you will lose most sellers unless you do an awful lot of explaining and persuading face to face.Personally, I would cut this down to 2 offers plus the realtor route if you want something to compare against.

How do you like to VR compared to other REI?