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You'd do the same investment but treat it as an IP. So you pick the yield too.

Yes it's speculative. But there's an art and skill to it that makes it probably as speculative as investing in relatively higher yielding assets with less growth. To put in to context, how many years of $100k cashflow positive would one need to replicate a $1m tax-free gain on their PPOR in...

Nightmares could pay off. But sometimes it's the mansions that have value and people overlook it - because they all think they can value add on the nightmare and end up overpaying for it.

That's right. It's not a hard task, but it's by no means an "straight forward", otherwise there wouldn't be so many people in average income jobs. Complications include: - Can the area be rented out easily - Risk of rent default, unforeseen circumstances (eg termite infestation, floods etc)...

Exactly. Or you could do a combination of both. Get $2.5m of properties at 10% yield. Then one day you can sell some off and have say $1.5m of properties giving you $150k. Also over time rent presumably goes up (depending where you bought).