My clients often ask me questions about vacancy, how challenging it is to rent units out, etc. 

Challenges?

I agree with Jay, $400k seems light for a full gut reno on a high end property in that area (although kinda hard to say without understanding square footage naturally). 

Relying on appreciation alone is purely speculative in nature and can backfire.

Challenges?

Private money is always a challenge, but if we can prove we know how to make it work when times are good, maybe 1 or 2 out of 5 investors will still be willing to take a chance during a downturn.

Duplex to quad purchased at retail are getting challenging to find that would produce positive cash flow but is still possible in the working class areas (not possible in the hip areas).There is a lot of completion for the below retail properties and there are some people who can rehab RE a lot cheaper than I can and I suspect I can do it a lot cheaper than most newbies. 

They introduced me to their mentally challenged son, showed me pictures of their other "personal bay home and boat," and even showed me pictures of their friends $20 million boat with bedroom chambers for the Captain and crew...Know yo ISH!

Challenges?

It was a long and sometimes challenging process but I completed my first one today.