Getting high cashflow and not having to get a big loan or much risks to start out. 

We will renovate the fix up the first floor additional dwelling and plan to rent it out as a STR for the rest of 1st year to maximize the return of our renovation expense against our W2 taxes via the Cost Seg / Bonus Depreciation.

We have since moved out, and the property is yielding just under a 50% cash on cash return after all expenses, vacancies, maintenance, and capx.Financed FHA 3.5%.

These loans are what is working in this high rate, low Long term rent environment.

I look at the overall return of REI and project it will have a better return over the next 25 years than stock market.

And the quality of living is very high. 

DC is one of the lowest cap rates in the country.If you have a long time horizon, and have patience, with the areas strong rent growth you can end up with more cash flow here than a high cap rate market.

Fix and flips can be an exciting way to start, with the potential for quick returns.

Quote from @Griffin Dalrymple: @Nick Maugeri no bank will offer a LOC on the properties (even with very attractive LTV) bc they don’t want 2nd position.It seems like good options would be private lenders then, depending on what you can support for their return.

Personal preference though  Do you think 7mm is too high for a rental?