All strategies can make a lot of money, but the key ingredients missing in the 1-4 family strategy that you have set out is that there is little no value add component and no large scale.

Hi Oriana, 33606 includes Davis Island, so your looking at a very high end area where 1950's and 60's bungelow's are being torn down and replaced with multi million dollar mansions.

Also, I had crappy pictures for the rooms, so I replaced the light bulbs with bright white 800 lumens flood lights and staged the rooms a little bit and took new, better pics and that seemed to help boost interest enough to get more people to come out to the open house which eventually lead to me getting the two new tenants in place.    

I guess I'm just a little insecure about finding a replacement tenant since this is my first deal. 

Im going to be replacing a roof on a house here in NH.

@John Mitchell hi John, I have a fourplex in the Peninsula, a couple of Airbnbs in the Valley and a few commercial properties elsewhere in NS.Prices seem high right now, vacancy low, and inventory scarce, so in my opinion combining a house-hack with a short-term rental component would be a great way to get into the market, gain equity & experience.

Keep in mind just needing to replace the roof one time within the next 10 years or so could wipe out whatever savings remains in your repair budget after paying for routine maintenance, leaking faucets, landscaping maintenance, snow removal etc... 

That way, if the borrower(s) default they simply take the property back and hire a team of professionals to step in and replace the failed investor so the asset continues to churn out cash flow. 

one water heater replacement blows your cash flow for almost an entire year (although maybe you've accounted generously for capital expenditures like this). 

The properties expensive items are generally not replaced and the seller is putting lipstick cosmetic on it like shining the outside of the car but the motor and transmission is fixing to go out.There are investors that can make these rougher properties and locations work but few and far between.