You hit the nail on the head, and that's why I've been strongly considering it.

The nail in the coffin for IIP?

Jake nailed it- who suggested an S corp for holding an appreciating asset? 

You'll also hit a cap on how many mortgages you can get, so you may start 1031ing your 8-10 100K properties into higher value ones for example.

Progress pics and city inspections passed to date (continued):Floor framing and insulation complete (both passed inspection)Floor sheathing complete, pending nailing inspection.Walls getting stood up next week, as well as excavation for the upgraded gas line (to feed the additional gas meter) and excavation for the new water line to the ADU. 

@Fred Heller hits the nail right on the head.

Bill nailed the question, the answer you seek is in the comps.

Jayme Mendal,You nailed it, getting the property below value is key - though determining market value on a MF (which I am pursuing) can be difficult. 

There are subtle advantages to the BRRR concept, and @Lesley Resnick has nailed one of them - that profit gap that the flippers can't get excited about.There are other advantages too:  Say you can find a home on the 1% rule on the market. (1k rent, 100k purchase). 

I am at that crucial stage of nail biting and convincing myself how not to get started.