Since COVID, there has been a decrease of 39% in inventory from a year ago in Merced. 

However, excluding the events of covid(decrease in student pop), the growing attendance of the university positions the area as a good buy/hold opportunity simply because of the limited supply (even taking into account all the new apartment developments). 

I would like to reiterate something:Lease Option Assignments andSub2 purchase then renting or Lease 2 Own need CAUTION:These aren't in the Wholesaling model below median prices.These are houses ABOVE the median in good school districts in safe neighborhoodswhere demand for 3-4 bedrooms, 2 bath + houses is highwith fenced in yardswith 2 car garages with internal accessThe existing financing is a low rate and fixed not an ARMThe Seller wants to do this because the alternative to renting out or selling with an agent is not attractive.Get the house right, get the existing financing right, get the attitude of the seller right as to the risks if the tenant buyer does not get financing, get insurance in case of damage with a landlord tenant policy, etc.This model has an educational component of increasing FICO with getting new credit references (secured installment loan, secure VISA, etc), how to get a home loan with either FHA or other low down payment, decreasing D/E under 43%, going through a mortgage broker with tenant buyer, etc.

A way to decrease your risk, gain more confidence, eliminate your fears and worries, brainstorm ideas, and establish a support system is to join a group of like-minded investors on the same journey who share the same motives and relate to your situation.

Population is decreasing and has been for DECADES. 

Once you get into deals much more than this, the margins for cash flow decrease, to where it may not make sense. 

I'm not a fan of the garage ADUs, ADUs with awkward access, or ADUs with inadequate parking situations, but I'll take a stand alone ADU over a duplex with no room to build at todays valuations all day long.

When regulation decreases profits to the point of not being worth it there will be no demand and current land holders will dump.

Real estate can become less valuable over time (even over a long period of time).Economies evolve, cities change, local employers come and go, management of municipalities changes, and populations can increase or decrease for a wide variety of reasons. 

Expertise in the field of STVR management including marketing , communication and operation determines the level of professional ability.The ability to purchase an excessive amount of liability insurance does not increase or decrease the probability of loss for a property owner.