You cannot scale if you are a one man shop. 

If you're not planning on scaling, it's a foolish misapplication of the concept and you will not generate a higher ROI.

@Rhett Tullis  all well and good and since that is your space were you earn money I can see your bais.. but how does someone I LA SCALE this.. were are loans for these.

In short, my business partner and I are looking to scale a successful Real Estate business specializing in larger multi-unit / apartment complexes for buy and hold cash flow, and wholesaling residential properties for monthly cash buildup and reserves.

Use wholesaling profits to make your own investments or scale up.Or, if you are job minded but want to learn real estate investing, work towards becoming a commercial real estate broker or other player in the industry.

My take is that when it comes to flashy boss-free careers such as investing (on a smaller scale) there will be loads of people/gamblers who have interest in either trying it out our doing it full time.

Over 2478 sq ft.Market Value/ARV/Zestimate (low end): $58,000Asking Price: $35,000Total Rental Income / m : $1236FinancingDown Pmt (20%): $7,000Via 90% LTV HELOC (If I can get one, don't know if offered anymore)Mortgage: $28,000Mortgage Pmt / m: $129.67Closing Costs @ 4% of Asking Price: $1,400Via 90% LTV HELOC (If I can get one, don't know if offered anymore)Monthly Expense Estimates (Other than mortgage)Property Management @ 10% of total rent: $123.60Vacancy @ 10% of total rent: $123.60Property Tax: $100Insurance @ 10% of total rent: $123.60HELOC Interest Only PMT @ 5%: $35 Monthly Cash Flow After All Expenses: $600.53Total Y1 Cash Flow: $7,206.33Paying off the HELOC:After 12 months, and basic improvements, get the house to an ARV of $58,000 (This was the Zestimate for the property on the low end of the scale).

s, it's a fairly upscale house and yes, in this national market, that is a considerable degree of "speculation" (read: gambling).Unless you know it's a hot up-scale area, I'd opt for something more mainstream which caters to a much larger potential market.

This gives you economies of scale in a specific area and can increase your yield on the properties.

The idea is to scale my number of passive income assets rather than to get the best possible cash flow per asset.The majority view seems to be that CA does not offer many opportunities for cash flow unless you spend a lot of time locating such properties and putting in the sweat equity to make distressed/C Class properties cash flow.Here are some details about my current (rough) buy-and-hold strategy:1.