Hi Greg, I can understand your point regarding the equity and purchasing a performing note, although being able to purchase directly from the banks and at a good price effects this.

Property prices are relatively lower compared to major Canadian cities.Cons: Certain neighborhoods may have higher crime rates or lower demand for rentals.

Cities are running out of market fuel due to drenched inventory and declining home sales prices.

Prices can vary a lot depending on where you are looking and the location of the utilities.

Maybe other states make the process easier (but in all honestly NJ is fairly reasonable in how it approaches the issue) and have much larger amounts in question, which might make it profitable, but you would have to look state by state.

Purchase price: $235,900 Cash invested: $70,000 Sale price: $399,000 Complete Renovation: deleting walls to open up kitchen into living room, new kitchen, cabinets, appliances, custom doors, floors, trim, paint, new laundry room, new powder room, new master bathroom, custom woodworking, exterior farmhouse paint, all new interior paint, etc.

People purchasing single family homes for almost retail price for outdated home that will not yield any profits unless the work is DIY.

And if the veteran/seller isn't willing to carry a note and moonlight as a mortgage loan servicer, very quickly/aggressively filter out people who do not have substantial down payments (sales price - current loan balance = minimum down payment). 

Option 1: 1031 into another STR, target price $1.1-1.4m.

Purchase price: $674,000 Cash invested: $134,000 Long term rental purchased in area that is under development and predicted to rise in value over the next 5 years - 2br 2bth