They all have that strong community feel, and properties there are prime "buy and hold" rentals.The $500K price point is going to be your biggest challenge in those specific areas, especially for a home that fits a family of five.

If the yield/return does not meet my minimum requirement I’ll try to determine the probability that the seller will accept an offer at a price that does provide my minimum ROi.Assuming the above is positive, I will utilize all available information; LTV, property type, specific geographical market, payment history, etc. to determine if the note fits into my acceptable risk parameters.  

We manage small-to-mid-sized portfolios (1–20 units) for clients in New Jersey with Proactive Property Management, and we’ve tested a few property management platforms over the years, so I’m happy to share what’s worked and what hasn’t.What we’re currently using:We’re back on Buildium, and it’s been a great fit, especially for a growing portfolio.What we like most:1.

There’s nothing wrong with starting small to get experience under your belt, just make sure the neighborhood and tenant profile fit the level of involvement you want.

The folks I know who do it successfully all fit into these categories: Class A/B properties in great locations with high tenant demand and quality tenant base.Owner used to live in the area, or in the property, or has close relatives or friends nearby/ personal connections and familiarity to the area.Owner is well capitalized/ can absorb negative cashflow indefinitely.Without the above, the risk increases substantially. 

Cost is a huge part of this (ie fitting within the management fee if it’s included or working with the client’s budget if it’s a surcharge), as well as managing expectations.

Just sent you a guide on your DM that might be pretty helpful for you.Between the STR loophole and your move to full-time investing in 2026, you’ve actually got several tax angles to work with.

They don't let little things from getting in the way and are good at finding solutions, rather than problems.A good broker can avoid deal-killers, like loan amounts or regional lending issues, and can find these lenders that fit with what the borrower is trying to do.

There may be opportunities there as well.So, check out the requirements before starting your search, and build your search based on your ability to fit the city's standard for maximizing placement of ADUs.

Don, this is such a solid breakdown and honestly one of the clearest examples of why newer investors shouldn’t get stuck thinking every good deal has to fit one “method” or one box.A lot of people only look for simple BRRRRs or basic flips, but deals like this are where real wealth is built:• You solved a real problem for the seller• You structured the capital in a way that reduced risk• You used disposition on one asset to strengthen the other• You lowered debt cost dramatically• And you built a long-term cash-flowing position with almost no competitionMost investors would’ve walked because the surface math looked bad – negative cash flow, defaulted loans, vacancy.