We are not large scale but we do own properties in multiple states and are aware of the limitation of a subjective line like "should have rented in a hot market".

@Diandre PiercePaying down mortgages is the opposite of scaling.

This means with my numbers it will be cash negative.how will this help you scale to 3 to 4 deals a year to get to 20 deals?  

Quote from @Robert Ruschak: Would you skip the 700+ single family houses and scale up faster into multi-family?

It's all about starting smart and scaling up! 

They offer better economies of scale and tend to be more manageable as you grow your portfolio.

Part of the reason coastal values haven't quite scaled to heights of neighboring states is the remoteness and lack of winter sports and high end amenities and entertainment, but that doesn't mean trophy estates, ranches and homes don't exist.

And this is a biggee wading through the fake lenders or the Joker brokers that tell you what you want to hear  but cant get the deals funded and you lose the deal and a lot of money.3. with actual PML  private people  usually have very limited funds so cant scale with them.. they can have a life event and just stop doing loans all together..

But if your goal is to cashflow positive from the Day 1, you may find it very challenging due to current day interest rates, high cost of construction and the fact you won't have the efficiencies of a seasoned developer building at scale.

Ultimately, I do think S8 requires scale and lots of efficiencies but has its benefits.