There are too many variables to give a one-size fits all answer.Personally, I would put $1M into commercial syndications (money backed by a hard asset that historically performs well in market turmoil) and diversify the remaining $1M across notes, NNNs, SFHs and some S&P 500 index funds.

@Varinder Kumar  Credit unions are your best bet. 

The whole 1, 2, 3 % value really varies on size of deal due to cap/ex costs.

There are tons of threads here about how to look at numbers on rental properties and decide if they are a good bet.

If it's different than what the seller is advertising/renting, that could be a tremendous negotiation point.I would bet there is a lot of mismanagement here, which makes me think this might be an opportunity.

@Franklin Marte, we need some details.What size building?

Hello,I'm wondering if people 1) use Automated Valuation Models (AVM) in the small-medium size mulitfamily space to spot under-valued properties by comparing the AVM price (the predicted appraisal value) to the list price (or the price you think you could reasonably buy the property at) and buying at a large difference (e.g. the Zillow Zestimate or Enodo: https://www.enodoinc.com/e-valuation.html) and 2) use any software to make a data-backed prediction of the ROI of various repairs for a BRRR approach (e.g.

Personally, I think our best bet is networking and finding a partner that can bring us deals with a mutual financial benefit.

Here are some of the numbers we were thinking about when considering this property.I don't have a lot of experience estimating construction costs, but it seems like what would be the most worthwhile for this property would be to rebuild into a SFH or a duplex the size and style of the neighboring properties which are estimated on redfin at $667K to $700K (those are 3br/2.5ba and 4br/2.5ba respectively). 

Other side same size needs approximately 30k in rehab and will rent for $825+.