So for sure if your leveraging C class rentals by all means they better cash flow other wise you will go under pretty quickly as they tend to be non liquid or you will lose money if you do liquidate as other investors are your only exit and they look at these the way all investors do.. with locals looking at them that much harder.

We bought a 5.5 million retail center in Texas and are now looking up to 7 million for the next one.Retail NNN STNL or MTNL you can get passive at for quality at about the 1.5 million purchase price or higher whereas multifamily you are looking at about 80 to 100 units and quality about 75k a door or more so about 6 to 7 million in price to be more hands off with management in place and layers of repair people.Syndication you can diversify but you lose control and are sharing returns with the sponsor.

It really makes sense on commercial properties with acquisition price in excess of $500,000 and some to major rehab having been done.

@Brad WarshawFrom your other thread:"I bought a condo at the auction that has water damage and mold in excess of 15k to repair."

I bought a condo at the auction that has water damage and mold in excess of 15k to repair.

We had nothing to lose negotiating a lower price, so we should have gone down that road.

A 50k property at 500/mo rent will likely lose money every month. 

Investors are better off losing the deal than getting into a situation where major repairs come as a surprise after the fact.Likewise, investors are ahead of the game when they do their due diligence on the contractors performing the rehab work.

Quick sidebar, if the same prospect receives 25 postcards from different sellers all saying the same thing, the message begins to lose effectiveness, and it might be time for the savvy marketer to move to something new. 

And if you don't know the difference between NOI and cash flow, you're probably not experienced enough to take down 22 units without losing your shirt.