ThanksWelcome to BP Johnny,We are based in Toledo.Great market with many undervalued properties.Don't be scared of failure as in order to succeed one must fail numerous times.Thanks and have a great day.

Risk/Reward analysis are far more helpful and if you apply a sensitivity analysis to your IRR projections, you might find out what is more important to your investors, cashflow vs appreciation and the risk of each, which should help you determine a target for raising capital. 

It all depends on what you want to risk vs reward.

However, I would say it is one of the least important things in determining success in real estate investing.You are right that investing well reaps higher rewards than commissions.

Leverage does carry more risk for that reward so others rightly object to this strategy.

I invest in Everett (30min north of Seattle) for numerous reasons but Tacoma has always looked very attractive from a pure numbers standpoint.

Make sure the reward well outweighs the risk.

Buy and hold can be very rewarding as well.

You might also ask the neighbors for help and offer a reward if caught.

Numerous posts about this company.