@Luis Aguilar Yes, Up to 4 units is fine and is still a residential loan.Rates are subject to many variables, your credit etc but yes they are in the 3.5% range.Happy to connect you with a great lender to provide you with actual answers.

Too many variables.

There are so many benefits and drawbacks to investing in your local market and just as many benefits and drawbacks to investing in a ton of different places in the US.I think to help limit the context of this conversation, you may want to quantify some of the variables of this question, to help aim answers.For example:1. 

I'm getting to used to people complaining about reversion cap rates when we simply use a different variable to get the same result!

Sense Richardson submarket is gentrifying and clearly a better place than in 2008, it gives you more comfort that you will be able to manage through a downturn.If you are looking at a syndication deal, the experienced operators should provide a sensitivity analysis to rent, occupancy and interest rates if they are using a variable rate model.  

Pretty much look at the reasons I was confident of long term property appreciation.Prop 13 adds another factor that increases the long term cash flow outlook.So when a San Diego RE is evaluated for purchase if you only look at initial cash flow you are leaving out some significant variables. 

I have done many remodeling or flips adding great value to properties but the profit has been always for my clients.I finally decided to start doing the same thing I have always done, but as a real-state investor this time where there are some new variables to learn.to start I want to do some flips and I'm trying to define where.Because I live and work in NYC, where is almost impossible to start investing, I was thinking according to what I read and research; Newark, Jersey city, or even upstate NY where I spend some time could be some of the options.I'm looking for wholesalers or investor friendly real-state people to help me find my first deal.please don't hesitate to contact me with deals of for anything you need.Carlos

Zillow estimates on rent or home values are highly variable.

Up date one side by adding additional bed and bath (the other has already had this done and is in excellent condition)ARV: 475-500KMonthly income: $3200Monthly expenses: $2283 (mortgage, fixed and variable expenses, future assumptions) see below-monthly P & I: $1622- fixed expenses: $340/month (water/sewer, insurance, property taxes)- variable expenses: 2% vacancy ($64/month) , 5% repairs & maintenance ($160/month),  cap exp 3% (96$/month): No property management since we do this ourselves for our rentals.- future assumptions: 2% annual income growth, 5% PV growth, 2% expenses growth, 6% sale expensesBigger pockets tool sheet with above data:Cash flow: $916/monthCash on Cash ROI: 6.65%-7.57% depending on rehab costsPurchase cap rate: 7.15%I know this does not meet the 2% or 50% rule but it seems like a good investment for the area.  

What are the major variables we should consider?