I didn't know there were detectors for these sorts of things.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

But starting with single-family can be a great way to gain experience and confidence before tackling larger deals.If you were someone I knew personally, I would probably suggest multifamily, but it's not for everyone.

Have you had larger Cap Ex projects that you didn't anticipate?

I have had a lot of success purchasing 5 bedrooms houses next to larger universities and have been able to easily find tenants.

Then sort down to 3 or 4 areas you want to try to make connections in. 

He's got all sorts of calculations and reasons.  

Net effect, typically, means distributions are not taxed in current year, but do lower your basis resulting in larger tax bill upon sale.Depreciation reflected in the net gain/loss from rental box on K-1.  

There are also bonus rates for larger investments.

Hey William, what about adding another partner that has experience doing larger deals?