It is also not apporiate to compare a liquid asset to a non-liquid asset, RE is not traded for cash within short periods of time at it's "current" value, for a quick sale the price is discounted to increase demand, much more than a quickly traded asset.The assumptions Dion pointed out with the classifications or grade of properties is really areflection of the uniqueness between properties.

Hi Everyone - long time lurker and researcher here on BP which by the way is one of the most useful sites you can possibly use to better your REI goals.So i have spent the last 9 to 12 months researching and learning, reading every book i can, listening to every podcast available (almost) and am starting to analyze now and plan my strategy and wanted some advice on what people on this site think.A little about me - I am an investment Banker by trade and am very interested in pursuing solid cash flow properties.I have set a goal for myself to acquire 4 properties by 2021 - so essentially 1 per year for the next 4 years. i often know people surpass their original goal once they catch the REI fever but figured that was a conservative goal.I am trying to target a 13% minimum CoC returns for SFH across varying states (Indianapolis, Cleveland, KC, Nashville) - taking into account all the usual bells and whistles, ie capex (maintenance and big ticket), PM, taxes & insurance, vacancy etc. also trying to layer in excess expenses as "Misc" and still hitting returns. 

Unless you're a GC by trade, I'd let the pros handle it.

Hard money lending may allow you to move faster but you have to understand that there's a trade-off.

The first deal was $30,000.00 down both were sold 2016 and trade up to 4 bigger properties and my friends gave m e more money.

People sell their properties and trade them for others all day and I have not come across 2 investors yet that are selling for the same reason.

I would love to have a conversation with you about what's trading and some factors in the leigh valley areas if you have just a few minutes Thank you, looking forward!

IRC Sec 469 is more a "timing" code section and less a code section specifying what is or is not deductible.In a nutshell, if the activity:Rises to the level of a trade or business, potential home office deduction.Is a mere investment, no home office deduction.Best of luck.

Additionally, you will be required to disclose its presence to any trades working in the building (i.e. an electrician running a new circuit through the attic).  

With any of these, don't forget to understand the tax consequences for a seller with deferred taxable gains, any long term owner pay have a chunk of taxes with a cash sale.