Marie Poe - Since we have an ongoing appreciating market again (in the FHA limits of CA) and likely will continue for 2 years or so, getting a low equity deal creatively (sub2, lease option, etc) and placing a tenant could bring a small windfall down the road.

Also, thanks for all of the ongoing great posts to everyone on the site!

I think I understand your initial thoughts in that you are wondering why an investor who you are seeking to buy into your fund is not willing to invest in a solid ongoing return and would rather wait for a home run and make it.I think that most RE investors are not scientific in their approach.

Originally posted by "Wheatie":Most expenses, like property management, vacancy, legal expenses, evictions, tenant damage, taxes, and insurance have little or nothing to do with new construction vs. existing houses.New units have very little and often no repairs the first year or two, while older units will often have immediate and ongoing repairs/deferred maintenance.

Since you are planning on going conventional after the house is complete, are you planning on using these as rentals?  

As we repair and upgrade, we start the search for the next property...Thanks Bigger Pockets for the ongoing training and encouragement to continue to grow our RE business!

There is a mentor program for new agents, ongoing training opportunities, coaching, tech and social media training. 

If you have enough money to actually purchase a pool of 100+ NPN's and you have enough capital to cover the on-going capital demands of the assets being illiquid, then you really should find folks that know what they are doing and team up with them so you ensure you cover all the concepts you need.

More than likely you will have additional frustrations in property management and on-going maintenance.

@Arthur Picanco, the "50% rule" postulates that on average, the ongoing expenses (not including mortgage) for investment properties will be roughly 50% of the gross rent return.The "1% rule" means that in certain markets you should be looking for properties whose gross rent return equals at least 1% of the purchase price, per month!