If you're prudent, these lower income assets can be higher yield and relatively stable, but the first year or so of stabilization is usually subject to more incidental risk.

Once that property is stabilized and performing to your expectation, continue on to the next property.My recommendation is under the assumption you have the ability to acquire traditional financing (stable employment the last 2 years, have funds available for closing cost, good credit, and have a decent debt to income ratio). 

Stable and diverse employers? 

The core (what makes the product stable dimensionally and protects from indentation) is much better on the coretec product.

You'll need 2 years of stable employment in the same field to get a loan for a house.

Builders are quoting 125 to 175 for 1 bedroom with loft which fly off the sale shelf and go pending in 24 hours here. 

Just secured a $50K HELOC on my primary residence to use for down payment on a property that currently has stable tenants and will cash flow an estimated $500/month after PITI.

And if the numbers and stars aligned you'd actually end up with an additional income producing unit to your stable.

That is amazing how stable the housing market has been.

To achieve a pref the first year on a value add in my opnion you are going to want to raise extra funds to cover the pref for the first couple of years before stable.