Since your dad is a contractor with access to affordable labor, the renovation costs could be lower than average.

For example, California has an $800 minimum franchise tax, while other states have lower fees or no franchise tax at all.

.$300k mortgage at 7.25% (30-year): $2,046$300k mortgage at 7.6% (40-year): $1,996Technically, it lowers the monthly, but not by much once factoring in the rate adjustment.

But as far monthly payment you could easily buy a house in a cheaper location have less roommates and the same monthly payment or the same number of roommates and a lower monthly payment.

It's a more affordable market and lower property taxes, so you may actually have a chance to cash flow.

Guaranteed others are fine with a lower elevation, but I do not have water run over my foundation inside.

If you can’t do a 1031 to a non-income tax state, figure out a year when you will have lower income and tax rates ar as low as possible.

Quote from @Melanie Baldridge: Why I like investing in real estate more than 401(k)s.Both offer tax deferrals, but here's the difference:If you're making pre-tax contributions to your 401(k), then withdrawals = ordinary income tax.With real estate gains, you're paying capital gains tax (which is typically lower).Plus, RE investors get:1.

For example, should we focus on acquiring one high-quality property in a strong market, or would it make more sense to spread the investment across multiple lower-cost units in emerging areas?

But if you're comfortable with rougher areas, then you can definitely find properties at lower prices.