Market expansion: case study for job opportunity!

[Ryan Leake]

Hi BP community! I've been lucky enough to be moved along as a candidate for an exciting role. The next step is a case study and I'm curious to hear others thoughts on this platform to conclude the direction I'll take. 

P.s. I'm not too clear on how to include the "3% quarterly distribution target" in the analysis. Any thoughts on this would be appreciated too. Thanks for any considerations and time from y'all!

Please see case study below

Given the management fees and the recent rise in interest rates, we need to expand and/or shift our target markets from Denver, Austin, and Seattle...

[Company's] current portfolio metrics are as follows:
- Current Net Yield = 3.5%
- 50% LTV
- After our 1% management fee and cost of capital, 3% quarterly distribution target

How would you think about what markets we should expand to and why? 

Please provide your quantitatively driven analysis and recommendation.