I am going to see if I can switch to a local Wisconsin insurance that reflects our local risk level in their premiums.Many of the homes in the Pacific Palisades are 3-5 million, but when you look on Google Street View, most are very modest homes from the 1960s (there are some $20m ultra luxury mansions too), so a lot is the land value, the home replacement value on a 1600sqft may be what - 500k at the most?

I completely agree that luxury rentals need to offer more than just aesthetic appeal; they need to resonate with tenant expectations and justify the premium rents.

I can envision that the numbers on these luxury homes would lead to to a long lag time...but hopefully I'm wrong. 

and on BP ultra wealthy could mean 1 mil in cash or 100 mil in cash or billion dollar empire :)  One thing is certain unless you inherit wealth it takes some amount of work to obtain it.

I am guessing you like the numbers you see in Strawberry Mansion and Norristown (Montco not Philly) but do you know for a fact that at those numbers, you can do a full gut rehab and be at a number that will allow you to profit, and along the way make some sizable mistakes especially if this is your first project . . . 

Then rent some exotic cars, a yacht, a mansion and some hot women so you can sell this formula online like Tom does.

You can have a mansion fronting the Mediterranean, but if you pay too much for it, you're done.

Like you, when I'm working with clients I highlight the key advantages of the conventional rehab loans (Fannie Mae's Homestyle and Freddie Mac's CHOICERenovation) are:- They can be used for investment properties- You can include luxury items- They have a higher limit – $806,500 in most places.Jeff

I started out owning a 1908 mansion and a 1890 mansion.

This home was located in a zip code that is notorious for its ultra-modern design (though those homes are still sitting for sale).