Eliminating natural light in a bathroom is a major mistake.

Seems like the definition of buy n hold RE regardless of if relying on cash flow or appreciation.Cash flow, in addition to having the actual cash flow reduced such as Las Vegas and Detroit (as two of the worst examples) in the Great Recession (GR), there are other ways to loose money including the loss due to not keeping up with inflation (most of the cheap Midwest areas), natural disasters (could be anywhere but lately it has been South exposed coastal via hurricanes and tropical storms (Texas, Loisianana, Mississippi, Alabama), Ca via fires (Paradise, San Diego twice, Ventura area), and tornadoes (middle of the country), and large beyond planned cap expense items (could happen just about anywhere but good due diligence and conservative cap ex estimates can reduce the risk).We had RE duplex (STR) in Gulf Shores Alabama that we sold after it was hit by 2 hurricanes. 

this is my dilemma recently; eyeing for two deals at little Italy and Danforth area; one is a detached full gut on Danforth which is listed at 1.5; I will probably offer for 1.3 to see if I get it, and need 700k cash to do a full rebuild for 18 to 24 months then sell hopefully at 2.6-7; the other opportunity is at little Italy at about 1.3 purchase price for a semi and do a duplex conversion for 250k reno and hold for 5 years for natural appreciation; which one should I do?  

If water, sewer, and natural gas available at the street?

This also makes it quickly adjustable, and balanceable (I know that's a word because spellchecker found it) almost naturally by those involved with it directly, and naturally balance things by their ability to quickly take advantage of the natural swings of the market. 

I am normally aligned with your thoughts but we may be misaligned on this one.Offering packages may say 5 or more years for conservative purposes but many have plans to sell or refinance (supplemental loan) after the value add to realize the sponsor compensation on the sale, eliminate/reduce the preferred return, and to maximize IRR and increase the velocity of capital. 

The most modern units have resistive electric elements to supplement. 

Alternatively I could buy two cash flowing properties (say $50k each that cash flow $500/month) in a cheap area and use that income to supplement my rent.

Property Maintenance and Unforeseen Costs: Monthly holding costs consists of all utilities costs such as electricity bill, natural gas, water, and garbage/sewer/recycling.Disclaimer: All parties assume loss on their own behalf, no parties are responsible for any other parties loss.

Hi David,Oh yes, it's here, and you will find the same thing in California about other areas of the country.It's just human nature in some instances.Just go with flow and make money, because that's what it's all about.It reminds me of this old TV commercial: https://www.youtube.com/watch?