The cost of labor , materials , property taxes , inflation , interest rates  etc .

The human race has historically been poor at predicting future, so it's wise to prepare for multiple scenarios.Mortgage rates in 2025 may decrease slightly if inflation stabilizes and the Federal Reserve eases rates, though they are unlikely to return to pre-pandemic lows.

This is largely due to the fixed nature of ongoing maintenance costs, which become proportionally more impactful as the park size decreases, thereby inflating the expense ratio.

Generally speaking, if you borrow money at 7% interest and your investment is earning a 10% return, 10% - 7% = 3% and you are not growing faster than inflation.

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

@Jonathan Small government actions have led to an unprecedented 40% increase in the money supply, 50-year record inflation, record increase in interest rates, bank failures, credit tightening, CRE recession, housing affordability issues, mobility issues, inventory issues, and massive impacts to the world economies, every investment class, and our families, kids, and friends like never before. 

Adjusted for inflation, the prices of homes in a desirable location appreciate more than average wages. 

A market like Boston has a long track record of appreciation in excess of inflation/cpi.  

My thought is that I could reinvest this money into a few other rentals in better markets to gain better cash flow.One kicker of the equation is that I have the loan on the property at 3.1% and since 2018, inflation has been much greater than the loan interest, making me hesitant to give up such a good rate.My goal is increasing cash flow with my investment properties so that I can turn this into a full-time gig.

At 3% interest you’re bearing both inflation and appreciation from the cost side. 9.