Which makes sense if you have three large apartment complexes, because they each represent a large sum of equity and risk exposure.Be sure you run a responsible business, maintain your properties well and make sure they are code compliant, get good insurance and an umbrella policy on top.

BUT....bearing in mind Andrew's original caution about the "lesser of the two number's" you could still get all your money back out of the deal fairly soon no?? 

I already own 25 units so I know the market fairly well.My plan has been to acquire a couple (or three) 4 plex units that should net me $150 to $175/unit/mo (based on what I have seen over the last 3 years with my other units).

To qualify for rent on the property you are purchasing, the appraiser will do a rent schedule to determine fair market rents for qualification.

fair is fair. 

While we are very selective in our screening process, we have been able to maintain very low vacancy rates. 

People are figuring out that it takes more than market rents to maintain the home's expenses & structure and pay down the mortgage - eventually. 

Gotta maintain those properties and not let them turn ratchet.

Not so much on the return though LOL...being fairly well travelled myself..

Low-maintenance, well maintained desert landscape.