I could speculate most bpers would agree.

Own adjacent is one thing, but paying cash is risky.You need to have strong cash flow first to be able to support a venture like this $1-200k purely speculative.

My underwriting would likely have this over a 50% expense/vacancy ratio.Existing owner minimizes maintenance/capex, likely (I am speculating, but have seen it before) does not reflect the 2 empty units, probably has no PM allocation (because they’re self managing and it is convenient not to pay themselves to claim a 22% on T12. 

The cap rates for S8 investments around here are pretty attractive, but you likely would have benefited from mixing in a couple speculative properties in emerging neighborhoods.

So you are not losing your 3-5% management fee, or 10-20% construction management fee to someone else's pocket.REITs in many cases carry less than 50% LTV, so "less risky" is certainly true, and often are cash buyers.REITs are often highly prioritizing steady cash flow, so are not buying highly speculative "value-add" assets. 

Mostly just drilling speculative ones!

This is the table I use for selecting which activities work for REP and MP.Activities that Count for REP and MP✓ Acquisition analysis, financing, negotiations, closings✓ Rehab planning, supervising contractors, buying materials✓ Tenant showings, screening, leasing, Section 8 work✓ Bookkeeping, CPA prep, property-specific travelActivities Countable for REP but Weak for MP⚠ REIA meetings, networking, general market research⚠ Education/training not tied to your own propertiesActivities that Do NOT Count✗ Passive investor oversight (reading PM reports only)✗ Travel not tied to property tasks✗ Generic webinars, speculative browsing, hobby research

This positioning means you are not tied to appreciation or speculative exit timelines, and you aren’t dependent on operator goodwill to be paid.

Whether you're managing your own units or working with a team, every deal is a learning opportunity that brings you closer to your long-term goals.A few quick tips as you grow:*Focus on cash flow over speculation in the early stages-steady income is what builds stability.

I still coin BTC a speculative play but I acknowledge the results it has long as it's popularized utility holds.