Didn’t go with the lowest bids, went with “middle” bids thinking that meant better quality — but the work still wasn’t great.

I have a question though: we see this with rents that are on the top end or above of what the property is worth: the quality of the applicant goes down.

Usually we help them build their own portfolios but we do also have opportunities for investors to invest in larger projects with other investors.The Midwest and Michigan specifically offers a high quality of life and affordable living compared to many other markets nationally. 

@Brian LovingoodAppreciate you laying this out clearly—and respect for asking for honest feedback.Short answer: this is very high risk for a first reno, especially out of state.At that price point and condition, the biggest concerns aren’t the 2% rule—it’s execution risk:Studs-out + city scope + 180-day clock = zero margin for GC delays or overrunsMilwaukee city inspections, permits, and change orders can easily blow past $85kExit values of $70k–$130k mean little room if ARV or rents miss$900/unit feels optimistic for that asset class unless finishes and tenant quality are dialed inIf this were a second or third project with a trusted GC already proven locally, maybe.

After reviewing suppliers independently, comparable quality furniture could have been purchased for roughly $15,000.

He’s understandably excited about the cash flow; I’m more concerned about management risk, tenant quality, and distance. 

When they eventually move out, I plan to do a full renovation to bring the unit up to high-quality standards and maximize its rental potential.I’m happy to connect if you ever want to chat.

You are looking at multifamily - if bigger than 4 units, do the income method of valuation and focus on determining the local capitalization rate for your property type in your area. 

Rent increases also have to be approved, which can be slow.If you’re considering it, check your local payment standards and review the Housing Quality Standards so you're ready for the inspection.

A method of decision making has to be established.