The second half of your question is related to an entirely different concept—that of exit cap rate.  

I am aware that the concepts works as I met a woman who stopped flipping houses and rents single family homes for vets.

Hello BP Community,I'm hoping to start my real estate journey through house hacking here in the Peninsula or South Bay however given the astronomical prices and very active market, the concept seems quite daunting.

I think an incredible idea is simply the concept of a podcast where you literally are sitting in your first calculus class with only a knowledge of adding, subtracting, multiplication, and division.

Now I wrote that if you were using your own funds but the concept is the same.

The same concept applies to investing.

@Jonathan GreeneInteresting concept.

@Jeffrey Ascough this is a really important concept to understand with the BRRRR method and any type of home improvement where value is needed.  

However, since they are no longer new, you can only deduct their "as is" value as of 2020There could be quite a few potential complications, so don't use my example for anything but a general concept.

The concept can even apply on bigger properties, if the value-add play is high enough.