well said, just one thing,

By "perfect market" you meant "efficient market". In theory, in an efficient market nobody can make money because everything would be priced right.  

Since RE is always local, hardly effcient, we do have opportunities to pick up some incorrectly priced properties(condition C or B-), especially in small markets, where the pricing information is usually not well spread out and big dogs don't focus on those small markets. Furthermore, we are focusing MFU market, not SFH.  This market do have higher capital barrier to enter for general individual investors. That's actually our version of capital game.

If we execute right, at certain point in the future, our book value will be big enough to play the capital game with big dogs in the big market.