so most people will have to be as leveraged as possible to scale (at the beginning). as in, keep your LTV high and focus on buying 'as much' ($$) RE as possible. this is if you're doing a pretty run of the mill REI strategy like buy and hold. i came across an interesting guideline once: if you could sell today and net 7x+ your annual true net cashflow, you should cash-out/refi, or sell/1031. think of it this way: if your portfolio in a year is worth 1m market value, and you owe 600k, and have a lender that will do a portfolio loan at 80% ltv, you could cashout refi and get 200k to play with (minus closing costs). when you compare the now-lower cashflow from the existing portfolio (higher LTV & maybe different rate), to what you can do with 200k cash, THAT'S where it gets fun. maybe you lose 1k/mo in cashflow on the original portfolio (literally just made up a number, idk), but you can gain 2500/mo in cashflow with that 200k.. then doing the cashout/refi earned you a net increase in your monthly profit of 1500/mo, plus you're getting debt paydown and appreciation on "more" real estate, probably getting bigger tax benefits, etc.

The purchase price is too high.

He left us high and dry and went on a luxurious vacation. 

Hi Ashely,Unless you have high reserves and risk tolerance, it would be a good idea to steer away from major or even medium rehabs such as foundation or electrical.

Hi @Peter MatusI don't have all of the information on your specific situation but that does sound high.

I also highly doubt loss of use is something covered in a tenant policy - that is YOUR responsibility to get coverage for.

The rental rates are pretty high in the Seattle area.

Property taxes were too high.

Of course there is a demand for quality housing for all of the state workers seeking longer term leases.

interesting to see, a bit different but any market has development that works. we do a similar strategy for new construction but it's based on land location and identification rezoning zones that are ideal for high density in columbus oh, and a product that does very well which we do a triplex on a slab. all the same. 50k for a lot, 300k hard cost build for a stacked 2/1 triplex about 650 sq ft per unit, appraises for $500k approx when done, total return of capital within 12 months (Build, rent, refinance, repeat), and then redo the same process. it's harder to do it in some areas but in columbus we mostly do it in the urban core where density is typically supported because of the abundance of multifamily already.