@Braden Schlabs it’s really your risk tolerance.

Just a lot of hard work and risk tolerance.

@Ernie Sturzinger I would consider your own personal risk tolerance and the age of the unit.

Different investors do it differently because every investor comes from a different financial situation and has different goals and risk tolerance.

@David Ripplinger you have some good comments above but the crux here is 2 fold: appraisal calculations and rehab cost calculations.So if you can calculate those with 2%, that's a reasonable tolerance. 

Unfortunately I think you are dealing with the "you get what you tolerate phenomenon" meaning that the previous owner tolerated delinquency etc and so that is what your customers know they can get away with. 

It is important to really identify your criteria and go from there to determine what type of risk tolerance you have and what areas will work for you.

So it's important that you first figure out how much risk you can tolerate with your money, then figure out which strategy or strategies match your risk tolerance, and then look at individual syndications.

It all depends on your risk tolerance, and if you want to be local or if you’re comfortable with long distance rentals.

@Garrett Hawk I don't remember the exact words, but this was spoken to the effect of: Success can be linked to one's tolerance to risk and discomfort.