I suppose a higher cumulative preferred return could help mitigate this, but again, hard to say without numbers.Great discussion though, would love to hear your input on the types of projects you're accomplishing this model with.

The goal is to expect those mistakes and mitigate the downside so you can continue investing. 

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

I've sold all my assets and used the cash to buy guns and ammo and prepare for the inevitable doomsday, OBVIOUSLY. jk jk jk I'm gonna keep buying houses on good terms, with lots of risk mitigation, and I'm going to do it as fast as I possibly can.

Others might be fine with taking risk, but least by doing this a person can get an idea of what might go wrong.e) Legal document analysis: it will usually take a few days to go through the legal document properly, as almost inevitably there are tons of gotchas that either have to be explained, or mitigated with a side letter.That is the very short summary of what I do.

For over a decade I've used cooperative assignments, which is a type of lease option strategy which can mitigate risk and allows you to flip properties without the need for being on site or having a team of people on site. 

Then, with your cashflow, you could still mitigate (or completely cover) your rent payments (probably more so than you could if you bought something in Toronto). 

s comments: for me risk mitigation comes first, second is cash flow, then principal pay down and then appreciation last. 

Most importantly, how can you mitigate some of the risks?  

Another, following proven strategies in the Cleveland area to mitigate RE taxes, Water sewer costs etc...All of this on your own takes lots of time and money and mistakes too.Finally, as @Jay Hinrichs has stated, I was originally trying to do what I was doing with the single family, thinking I would be safe on my first two apartment complex 1031 exchanges and go for complexes that were small 8 units and 10 units, that the numbers said they were fully occupied and would cash flow nicely.