It’s less hassle, there’s no out-of-pocket money for rehab, there’s no risk of the ARV appraisal coming in low (soooooo many threads on this are sitting on BP), etc.Buying this kind of property is boring, less active, the “story” isn’t fun, there’s nothing sexy about locking in a low interest rate, etc.

There are around 220 units under management with nearly a 1:1 unit-to-client ratio (which helps negate concentration risk), and the annual revenue across all sources is approximately $600K.

There is inherent risk in every investment, and while we try to take as much risk out of the deal as humanly possible at the end of the day it is going to be your property and project. 

The real danger fOr these REITs is the refinance risk.

I didn’t see a way in to those 12-50 unit multis that didn’t put all my money at risk when the loan was called except doing a 1031 with enough paid off sfr to pay for it in full.

Longer terms means more risk to the lender, so longer terms means they'll have to charge higher interest rates to make up for the risk.

So a one-year lease may be at $1,000 a month but a month-to-month tenancy will be at $1,250 a month to offset the risk of a tenant leaving during the slow season.Another important step: inspect the property 60 days prior to the lease ending.

If you can take a reduction today, I can buy the house before it goes to foreclosure and you save the foreclosure expenses and risk of it going to the city if it doesn't sell.They might be more interested if you want to increase the tax value, for example if you want to build a house on it.Otherwise you have to wait until it goes through foreclosure and you never know when that will be and at what price. 

The lesson here is that Every bank has its own personality,  investment strategies, and risk mitigation levels.

I understand that buying cheaper homes is way more risky but I know folks that had been able to make it work for them really well and is just more in alignment with my risk tolerance.