If a potential buyer were to walk in there, it would be obvious that this tenant isn't renewing, and they'd be a fool to include that rent in their own underwriting numbers. 

My opinionBRRRR can be risky if it is your first deal.I think a house-hack would likely be the better / safer approach.With $40,000, you can potentially buy a $500,000 house assuming you put $25,000 towards the 5% down payment, $5,000 is used towards closing costs and $10,000 as a reserve just incase something needs to be fixed up.

Special assessments are always a risk especially with owning a large number of units.

After a while you learn the area and values and can easily spot a good value but for the most part we ignore the asking prices and send offers that make sense for OUR numbers and goals.We have to send a lot of offers yes but it ensures we don’t overpay or if we do pay full price it’s because we absolutely loved the asset and see growth potential.

Your network is the most important piece for any potential returns when you invest out of state.  

Interested in LTR’s, Multi-family, hard money lending, creative financing and potential partnerships     🏠 💵 📈

I would also argue that there are plenty of landlords out there that have rentals which are currently below market rental price.I assume that this part of the tax code was created to prevent those with multiple homes from letting relatives live in one for almost free, while potentially hiding that rental income and not having it registered as a business and pocketing the money.  

This will cost thousands more to complete and loose many potential buyers . i have started the process for a land survey.

And don't back out of a deal because you were given the seller's BPO from 5 years ago and you chose not to order your own, even though the old BPO still shows plenty of equity and the property tax assessment shows the property value has continued to increase since 2019.And don't ask if we can have one buyer's entity on the loan sale agreement and a different one on the transfer docs.Finally, don't try to broker our assets while claiming for a month you are buying them for your own portfolio.

Seems easy enough with potential to score a lot of goals.