What assumptions are there in the underwriting model and what's the risk involved with in the achieving these returns. 

I never intended to do so but it will serve as a solid test case for the business model where in if it is profitable I can revisit the garage apt at this property and convert that to a short term rental as well. from my research in the market it looks like the top earning units earn more with short term rentals than they would if they were long term.

Buying an expensive home feeding the cash hippo and trying to bank on appreciation is a super risky business model.

You don't want some 70 year old dump to be holding a 100 year old fixed place in what will probably be a worse location.Buy good properties in good locations, if you're going to hold to the day you die, don't go past a 10/15 year old property, but it's not really a good idea to hold residential properties that long, change out your inventory to keep up in good areas.Last week I made a post about what holding entails long term, bottom line, don't get caught up in some has been area as your wealth starts going south, rents run with inflation but held back to income levels of lower income tenants......not a good business model. :) 

Arlene, let me know what you are looking for.I want to try various non-guru models to see if it is possible to "pay it forward" or if the gurus are correct in charging everything upfront regardless of the results the students get.Send me a PM so that I may assess your skill-set.

The quants are out to monkey with our Internet usage by creating models to exploit our web surfing patterns.

Goals and business model would affect your decision.Small multi family units often provide mor ebang for your buck (better cash flow for the cost) and you get multiple doors with only one loan.Down side is the exit strategy is usually limited to investors only where as a SFR can be sold to both end users and investors.Multi familys can offer forced apprciation via increasing income and lowering expenses, but SFR's, if bought at the right time in the right place, can offer better appreciation from property value increases.If you want to ultimatley run a landlording business and earn enough cash flow to support you and your family, multis may be the better choice for you.

I've built many models and each one is used differently.

Hi I am an aspiring investor in Richmond, VA.

I am a huge fan of the Zappo's business model and look to incorporate a lot of the same ideologies in my business as I grow.