The cash flow numbers are incredible, but you have to understand what you’re buying.

So much incredible knowledge on this site.  

That is an incredible return for simply wholesaling the deal.  

If I was just starting out, I would do a short term gap funding or flip funding to watch and learn the process while securing my funds in a semi-safe environment.

Like Account Closed, great for selling a place to retail buyers, but the markups the window guys stick you for are incredible.

Assuming your refinance time doesn’t line up with an environment or situation where refinancing simply unavailable and you lose the property outright.

That said however, L.A. has incredible appreciation and rents.... so I dont mind dropping 25% downpayment to breakeven or slight negative on cashflow on the first couple of years. 

Check out what Randy Jones is doing in Newport TN at "Incredible Tiny Homes" (YouTube it)  3 different lots total of 140 tiny homes.

In a rising CAP rate environment (just like in a weakening residential housing market), you can increase cash flows and still see a decrease in value of the asset.I call it out only so people always remember that math works both ways and the mechanics behind small residential and large multifamily aren't really so different - forces outside our control still dominate. 

While they are incredibly busy, I dream of being my own boss making my own decisions that directly affect my bottom line and not being stuck at a 9-5.