At a much much lower risk and certainly less effort and headache.Now you can argue about dead equity all you want but remember, we are holding this until we die so ROE should not even be a factor.

Emilio Ramirez I agree, so far I have had 4 labor and equipment only contracts, good, less risk for me, I don't want to argue over $5/sf flooring when my bid is only for $3/sf.

No room for arguing no room for debate.

He has had his real estate license for 40 years and tens of millions of dollars worth of real estate.That being said no one can argue with your credentials, I have listened to your podcast and greatly enjoyed it.

@Joe Villeneuve please everyone, we are all here to learn let’s bring each other up instead of arguing over something with such little meaning.

If you get tenants in at $1800 even if rents rise it’s not as easy as just increasing rents to market.Couple examples of close by properties with way better numbers:https://www.redfin.com/CA/Oakland/1734-E-24th-St-94606/home/50248015 ~6% cap rate at current rents - which I would argue are way below market. https://www.redfin.com/CA/Richmond/153-S-12th-St-94804/home/1864148 ~6.5% cap rate@Joseph Weisenbloom thanks I am thinking the same!

It's funny I just argued with a cleaning service over this. 

hmm..guns and drug dealers...i suppose if it cash flows then great...but who has time to deal with reporting the guy, trying to get him out through the renovation scenario, or getting him arrested, the arguing, potential damage etc...Hire a property manager and move on to your next project.

I wouldn't begin to "argue" with that kind of statement!

You can argue with that, but those results speak volumes to me personally.